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Purpose
To participate in the 8(a) Business Development Program (8(a) Program), a firm must be 51% owned and controlled by socially and economically disadvantaged individuals. The owner or owner(s) who are claiming social and economic disadvantage can demonstrate their individual social disadvantage through one of two options: by writing a narrative or by completing the fillable questionnaire in http://Certify.sba.gov .
This guide will provide insight into what elements to include in demonstrating social disadvantage.
Definition
The definition of social disadvantage means that an individual has been subjected to racial, ethnic, or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. See 13 CFR 124.103(c).
An individual only needs to establish social disadvantage once for the entirety of the program term.
How SBA Determines Disadvantage
SBA must determine that the discrimination or bias experienced by an individual is chronic, substantial, and has occurred within American society (not within another country). Additionally, the discrimination must have negatively impacted your entry or advancement in the business world.
Key Elements of Social Disadvantage
To demonstrate social disadvantage, business owner(s) should include the following elements:
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Business owner(s) who choose to complete the questionnaire can input a maximum of 1,000 characters per each fillable field. SBA can request additional information, if needed.
Indication of Identity
Clearly describing which identity or characteristics you possess which have been subject to discrimination helps SBA understand your experience and eligibility for the 8(a) Program.
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One identity/characteristic is sufficient to establish social disadvantage, although individuals with multiple identities/characteristics may wish to specify more than one, as it is often difficult to determine which single characteristic is subjected to discrimination.
Descriptions of Incidents
An individual should typically provide two incidents of bias to establish chronic and substantial social disadvantage. One incident may be enough to establish social disadvantage if it is pervasive or recurring. SBA recommends limiting yourself to two examples to avoid unnecessary delays during the review process.
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The following are examples that would satisfy the level of detailed required by SBA: ·
| The following are examples that would not provide the level of detail required by SBA: ·
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Examples: Where
The following are examples that would provide the level of detailed required by SBA: ·
| The following are examples that would not provide the level of detail required by SBA: ·
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Examples: Who
The following are examples that would satisfy the level of detailed required by SBA: ·
| The following are examples that would not provide the level of detail required by SBA: ·
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Examples: What
The following are examples that would satisfy the level of detailed required by SBA: ·
| The following are examples that would not provide the level of detail required by SBA: ·
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Examples: Why
The following are examples that would satisfy the level of detail required by SBA: ·
| The following are examples that would not provide the level of detail required by SBA:
· Example 1 (Education): My faculty advisor declined my request because he agreed with the Director that I would be better off seeking employment in a predominantly female profession. · Example 2 (Employment): It was clear that they saw my physical disability as a limitation and moved on to the next candidate despite demonstrating that I could perform the tasks required for the position. · Example 3 (Business History): Plenty of other white business owners were able to obtain lines of credit from ABC Bank. Thus, the bank and its employees must have arbitrarily set higher standards for business owners and borrowers of color |
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