Guide for Writing a Social Disadvantage Narrative

1. Purpose

This guide assists 8(a) participants and applicants with writing their social disadvantage narratives by explaining each element of the SBA requirement.

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 must demonstrate their individual social disadvantage by writing a narrative.

1a. Definition

Social disadvantage is defined as an individual that 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.

1b. 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 another country). Additionally, the discrimination must have negatively impacted the individual’s entry or advancement in the business world.

2. Key Elements of a Social Disadvantage Narrative

Social disadvantage narratives should contain the following elements:

An indication of which identity or identities is/are the basis of social disadvantage.
Descriptions of incidents in which bias or discrimination has occurred.

Generally, narratives are sufficient at a length of 3 pages, but may require more or fewer pages. SBA will request additional information, if needed.

3. Indication of Identity

Clearly describing which identity or characteristics you possess and how you have been subject to discrimination helps SBA understand your experience and eligibility for the 8(a) Program.

Race, religion, ethnic origin, gender, sexual orientation, identifiable disability, and isolation from American society, and others are all categories of identities/characteristics which have formed the basis of successful social disadvantage narratives. It is important to specify the identities/characteristics within the category/categories which form the basis of your social disadvantage (e.g., Subcontinent Asian American woman are specific identities within the race and gender categories).

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 the subject of discrimination.

4. 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 the narrative to two examples to avoid unnecessary delays to the review process.

Experience(s) should be related to education, employment, and business history (including current or previously owned companies). Some of the broad types of experiences which may establish social disadvantage are included later in the document.

Education – SBA considers factors such as: denial of equal access to institutions of higher education; exclusion from social and professional association with students or teachers; denial of education honors rightfully earned; and social patters or pressures which discouraged the individual from pursuing a professional or business education.
Employment – SBA considers factors such as: unequal treatment in hiring, promotions, and other aspects of professional advancement, pay and fringe benefits, terms and conditions of employment, or retaliatory or discriminatory behavior by an employer; and social patterns or pressures which have channeled the individual into nonprofessional or non-business fields.
Business history – SBA considers factors such as: unequal access to credit or capital; acquisition of credit or capital under commercially unfavorable circumstances; unequal treatment in opportunities for government contracts or other work; unequal treatment by potential customers and business associates; and exclusion from business or professional organizations.

For each incident, please describe who, what, where, why, when, and how discrimination or bias occurred. Incidents are more easily digested by the SBA if they provide information in the following order:

When – Explain when the discriminatory conduct occurred. Exact dates, if available, are preferred but are not necessary so long as the incident provides a specific time period. This discrimination can be from any period of your life; you do not need to be experiencing current discrimination to qualify.
Where – Explain where the discriminatory conduct occurred. The incident must have occurred in American society.
Who – Explain who committed the discriminatory action. This could include an individual, a group of individuals, or an institution. Individual names, where available, are preferred but not necessary so long as the incident provides a specific figure or organization.
What – Explain the discriminatory conduct.
Why – Explain the reason(s) that the conduct was more likely motivated by bias or discrimination than other non-discriminatory reasons. Without additional facts, a mere assertion that the action was the result of bias or discrimination is not enough to support a claim of social disadvantage.
How - Explain how each instance of discriminatory conduct impacted your entry into or advancement in the business world. Offensive comments or conduct, while reprehensible, will not support a claim of social disadvantage if there is no negative impact associated with the incident.