{
  "id": "R40744",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R40744",
  "active": true,
  "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 448680,
      "date": "2016-01-06",
      "retrieved": "2016-04-06T17:35:37.629603",
      "title": "The \u201c8(a) Program\u201d for Small Businesses Owned and Controlled by the Socially and Economically Disadvantaged: Legal Requirements and Issues",
      "summary": "Commonly known as the \u201c8(a) Program,\u201d the Minority Small Business and Capital Ownership Development Program is one of several federal contracting programs for small businesses. The 8(a) Program provides participating small businesses with training, technical assistance, and contracting opportunities in the form of set-asides and sole-source awards. A \u201cset-aside\u201d is an acquisition in which only certain contractors may compete, while a sole-source award is a contract awarded, or proposed for award, without competition. In FY2014, the federal government spent over $16 billion on contracts and subcontracts with 8(a) firms. Other programs provide similar assistance to other types of small businesses (e.g., women-owned, HUBZone).\nEligibility for the 8(a) Program is generally limited to small businesses \u201cunconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of and residing in the United States\u201d that demonstrate \u201cpotential for success.\u201d Each of these terms is further defined by the Small Business Act, regulations promulgated by the Small Business Administration (SBA), and judicial and administrative decisions. \nA \u201cbusiness\u201d is generally a for-profit entity that has a place of business located in the United States and operates primarily within the United States or makes a significant contribution to the U.S. economy by paying taxes or using American products, materials, or labor. A business is \u201csmall\u201d if it is independently owned and operated; is not dominant in its field of operations; and meets any definitions or standards established by the Administrator of Small Business. Ownership is \u201cunconditional\u201d when it is not subject to any conditions precedent or subsequent, executory agreements, or similar limitations. \u201cControl\u201d is not the same as ownership and includes both strategic policy setting and day-to-day administration of business operations. \nMembers of certain racial and ethnic groups are presumed to be socially disadvantaged, although individuals who do not belong to these groups may prove they are also socially disadvantaged. To be economically disadvantaged, an individual must have a net worth of less than $250,000 (excluding ownership in the 8(a) firm and equity in one\u2019s primary residence) at the time of entry into the program. This amount increases to $750,000 for continuing eligibility. In determining whether an applicant has good character, SBA looks for criminal conduct, violations of SBA regulations, or debarment or suspension from federal contracting. For a firm to have \u201cpotential for success,\u201d it generally must have been in business in the field of its primary industry classification for two years immediately prior to applying to the program. However, small businesses owned by Alaska Native Corporations, Community Development Corporations, Indian tribes, and Native Hawaiian Organizations are eligible for the 8(a) Program under somewhat different terms.\nThe 8(a) Program has periodically been challenged on the grounds that the presumption that members of certain racial and ethnic groups are disadvantaged violates the constitutional guarantee of equal protection. The outcomes in early challenges to the program varied, with some courts finding that the plaintiffs lacked standing because they were not economically disadvantaged. Most recently, two federal district court decisions found that the program is not unconstitutional on its face because (1) \u201cbreaking down barriers to minority business development created by discrimination and its lingering effects\u201d constitutes a compelling government interest; (2) the government had a strong basis in evidence for concluding that race-based action was necessary to further this interest; and (3) the 8(a) Program is narrowly tailored to \u201cminimize the burden on non-minority firms.\u201d However, in one of these cases, the court did find that the program was unconstitutional as applied in the military simulation and training industry because the government conceded it had no evidence of discrimination in this industry. The decision in one case was appealed. The litigation in the other has reportedly been settled.",
      "type": "CRS Report",
      "typeId": "REPORTS",
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      "topics": [
        {
          "source": "IBCList",
          "id": 2636,
          "name": "Small Business Policy"
        },
        {
          "source": "IBCList",
          "id": 4628,
          "name": "Government Contracts"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc806963/",
      "id": "R40744_2014Nov26",
      "date": "2014-11-26",
      "retrieved": "2016-03-19T13:57:26",
      "title": "The \u201c8(a) Program\u201d for Small Businesses Owned and Controlled by the Socially and Economically Disadvantaged: Legal Requirements and Issues",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc227649/",
      "id": "R40744_2012Oct12",
      "date": "2012-10-12",
      "retrieved": "2013-11-05T18:07:05",
      "title": "The \"8(a) Program\" for Small Businesses Owned and Controlled by the Socially and Economically Disadvantaged: Legal Requirements and Issues",
      "summary": "This report provides a brief history of the 8(a) Program, summarizes key requirements, and discusses legal challenges alleging that the program's presumption that members of certain racial and ethnic groups are socially disadvantaged violates the constitutional guarantee of equal protection.",
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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      ],
      "topics": [
        {
          "source": "LIV",
          "id": "Small business",
          "name": "Small business"
        },
        {
          "source": "LIV",
          "id": "Business",
          "name": "Business"
        },
        {
          "source": "LIV",
          "id": "Minorities",
          "name": "Minorities"
        },
        {
          "source": "LIV",
          "id": "Minority business enterprises",
          "name": "Minority business enterprises"
        }
      ]
    },
    {
      "source": "University of North Texas Libraries Government Documents Department",
      "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc805991/",
      "id": "R40744_2010Mar18",
      "date": "2010-03-18",
      "retrieved": "2016-03-19T13:57:26",
      "title": "The \u201c8(a) Program\u201d for Small Businesses Owned and Controlled by the Socially and Economically Disadvantaged: Legal Requirements and Issues",
      "summary": null,
      "type": "CRS Report",
      "typeId": "REPORT",
      "active": false,
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      ],
      "topics": []
    }
  ],
  "topics": [
    "Constitutional Questions",
    "National Defense"
  ]
}