8(a) Firm

DEFINITION of '8(a) Firm'

A special status given to a firm that is owned and operated by persons deemed to be socially or economically disadvantaged. A business considered an 8(a) Firm is eligible to receive financial assistance, training, mentoring and other forms of assistance. The status is part of a business development program administered by the Small Business Administration (SBA), a United States agency charged with supporting the growth and development of small businesses. It is specifically outlined in Section 8(a) of the Small Business Act, and is designed to help small, disadvantaged businesses compete in the general market.




BREAKING DOWN '8(a) Firm'

In order to increase business involvement by a broader portion of society, governments provide incentives for certain segments of the population to own a business. The SBA identifies several groups that are eligible for 8(a) status including: Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and Subcontinent Asian Americans. Businesses that receive contracts due to their 8(a) status are subject to annual reviews.

RELATED TERMS
  1. SEC Form 8-A

    A filing with the Securities and Exchange Commission (SEC), also ...
  2. SEC Form N-8A

    A filing with the Securities and Exchange Commission (SEC) that ...
  3. Small Business Administration - ...

    The Small Business Administration (SBA) is an autonomous U.S. ...
  4. SEC Form N-6EI-1

    A filing with the Securities and Exchange Commission (SEC) that ...
  5. Small Business Development Center ...

    A partnership between the U.S. Small Business Administration ...
  6. Eligible Contract Participant

    A group or individual allowed to engage in financial transactions ...
Related Articles
  1. Entrepreneurship

    Are You Considered a Small Business?

    Find out what it takes to be considered a small business by the U.S. Small Business Administration and why some small businesses are fairly large.
  2. Professionals

    Types of Business Guidance Funded by Government

    To access the right type of advice and support for your business from a variety of government-funded services, know what's out there and what you need.
  3. Entrepreneurship

    How ‘Small’ Is a Small Business: The Statistics

    Doing the math will help you determine if you qualify as a small business and when your business gets too big to be small. Turn to the SBA for help.
  4. Entrepreneurship

    Get All The Help You Can Find

    Do you have what it takes to be a top entrepreneur? Learn what you can do to make it happen.
  5. Credit & Loans

    Getting Government Loans For Your Small Business

    Would a government loan provide a more cost-effective way to finance your business? See whether your company qualifies for a government loan.
  6. Entrepreneurship

    Top 6 Reasons New Businesses Fail

    Running your own business may be the American Dream, but it's become a nightmare for many entrepreneurs. Learn how to avoid the most common factors leading to bankrupt businesses.
  7. Budgeting

    Financial Literacy Tools for Small Business Owners

    Learn more about where you can access some of the best free financial literacy resources and tools available for small business owners.
  8. Budgeting

    Tools for Finding the Right Loan or Grant for Your Small Business

    Learn more about some of the best tools, resources and organizations available to connect small business owners with business funding opportunities.
  9. Entrepreneurship

    5 Barriers Small Businesses Must Overcome

    Small businesses can be nimble and innovative, but larger ones have name recognition, can raise capital and have other advantages that are hard to beat.
  10. Entrepreneurship

    4 Government Grants for Small Business Owners

    Discover common resources available to and used by small business owners and entrepreneurs in funding initiatives through government grants.
RELATED FAQS
  1. What is the point of developing a business model?

    Learn some of the benefits of developing a business model and how business models are used. Consider an example of business ... Read Answer >>
  2. What do you need to know to create a business model?

    Learn what a business model is, its importance and the primary elements that are needed in order to create a successful business ... Read Answer >>
  3. How much working capital does a small business need?

    Learn about the three primary factors that determine how much working capital is needed by a small business, including business ... Read Answer >>
  4. How can small businesses manufacture demand?

    Create demand for a small business product or service by focusing on the brand and market. Continue to learn offer excellent ... Read Answer >>
  5. What are some good resources to help entrepreneurs develop a business model?

    Find out what resources are available for developing a small business model; learn what websites contain useful information ... Read Answer >>
  6. What are the most common operating expenses for an online business?

    Learn about the common expenses of online businesses and find out about some of the tax implications of new business expenses ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center