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Description and requirements to be classified as a minority women
owned or disadvantaged business
8A
The 8(A) program is a nine year certification program. The first
four years represent the developmental stage and the last five are
the transitional stage. To qualify for the program, a small business
must be owned and controlled by a socially and economically disadvantaged
individual or group. According to the Small Business Act, there
are certain presumed groups that include African Americans, Hispanic
Americans, Asian Pacific Americans, and Subcontinent Asian Americans.
Other individuals can be admitted to the program if they show through
a "preponderance of the evidence" that they are disadvantaged
because of race, ethnicity, gender, physical handicap, or residence
in an environment isolated from the mainstream of American society.
In order to meet the economic disadvantage test, all individuals
must have a net worth of less than $250,000, excluding the value
of the business and personal residence. Successful applicants must
also meet applicable size standards for small business concerns;
be in business for at least two years; display reasonable success
potential; and display good character. Although the two-year requirement
may be waived, firms must continue to comply with various requirements
while in the program.
HUBZone Small Business
A business concern can be found to be a HUBZone Small Business if
it is small, it is located in an "historically underutilized
business zone" (HUBZone), it is owned and controlled by one
or more U.S. Citizens, and at least 35% of its employees reside
in a HUBZone.
Asian-Indian
A U.S. citizen whose origins are from India, Pakistan and Bangladesh.
Asian-Pacific
A U.S. citizen whose origins are from Japan, China, Taiwan, Korea,
Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S.
Trust Territories of the Pacific or the Northern Marianas.
Black and/or African American: A U.S. citizen having origins in
any of the Black racial groups of Africa.
Citizenship Requirement
The definitions provided below apply to businesses owned, operated,
and controlled by U.S. Citizens only. A business which is owned
by a non-U.S. citizen is classified as foreign-owned.
Disabled Veteran
A veteran of the military, naval, or air service of the United States
with a service connected disability. To qualify as a veteran with
a service connected disability, the person must be currently declared
by the United States Veteran Administration to be 10 percent (10%)
or more disabled as a result of service in the armed forces.
Disadvantaged Business
A business concern which is at least fifty-one percent (51%) owned
by one or more socially and economically disadvantaged individuals
or, in the case of any publicly owned business, at least fifty-one
percent (51%) of the stock of which is owned by such individuals
and whose management and daily business operations are controlled
by one or more of such individuals. Socially disadvantaged individuals
are individuals who have been subjected to racial or ethnic prejudice
or cultural bias because of their identity as a member of a group
without regard to their qualities as individuals.
Economically disadvantaged
individuals are socially disadvantaged individuals whose ability
to compete in the free enterprise system is impaired due to diminished
opportunities to obtain capital and credit as compared to others
in the same line of business who are not socially disadvantaged.
Individuals who certify that they are members of certain named groups
(African Americans, Hispanic Americans, Native Americans, Asian-Pacific
Americans, Asian-Indian Americans) are to be considered socially
and economically disadvantaged.
Hispanic
A U.S. citizen of true-born Hispanic heritage, from any of the Spanish-speaking
areas of Latin America or the following regions: Mexico, Central
America, South America and the Caribbean Basin only.
Large Business Enterprise
A business concern that does not meet the criteria for a small business.
Minority-Owned Business
A minority owned business concern is a business concern which is
at least fifty-one percent (51%) owned by one or more socially and
economically disadvantaged individuals or, in the case of any publicly
owned business, at least fifty-one percent (51%) of the stock which
is owned by one or more socially and economically disadvantaged
individuals and whose management and daily business operations are
controlled by one or more of such individuals. Socially and economically
disadvantaged individuals include African Americans, Hispanic Americans,
Native Americans, Asian-Pacific Americans, Asian-Indian Americans
and other minorities, or individuals found to be disadvantaged by
the Small Business Administration pursuant to Section 8(a) of the
Small Business Act.
Native American
A person who is an American Indian, Eskimo, Aleut or Native Hawaiian,
and regarded as such by the community of which the person claims
to be a part. Native Americans must be documented members of a North
American tribe, band or otherwise organized group of native people
who are indigenous to the continental United States and proof can
be provided through a Native American Blood Degree Certificate (i.e.,
tribal registry letter, tribal roll register number).
Veteran-Owned Business
Business must qualify as a Small Business and must be at least fifty-one
percent (51%) owned and controlled by a U.S. Veteran or Veterans
possessing a discharge other than dishonorable.
Women-Owned Business Enterprise
A business that is at least fifty-one percent (51%) owned by a woman
or women who also control and operate it. "Control" in
this context means exercising the power to make policy decisions.
"Operate" in this context means being actively involved
in the day-to-day management.
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