MAJOR CHANGE: The SBA's method for determining Social Disadvantage in 8(a) applications has changed following last year’s United States District Court decision on July 19, 2023.

NEW RULING: ULTIMA SERVICES V. U.S. DEPARTMENT OF AGRICULTURE

Service-Disabled Veterans and individuals facing handicap bias can now apply successfully for the SBA 8(a) program. This opens doors for Service-Disabled Veteran-Owned firms to access both the SDVOSB program and 8(a).

Previously, the SBA presumed no applicants were Socially Disadvantaged. Now, a personal narrative must be submitted by all 8(a) applicants to demonstrate their social disadvantage, an approach already required of those outside certain racial groups. As every group must now provide a narrative, the SBA has lowered the evidentiary burden, leveling the playing field for SDVOSB applicants.

PRIOR RULE: For 45 years, since 1978, the 8(a) BD Program used a presumption of social disadvantage for minorities from ethnic groups including: Asian Pacific Americans, Black Americans, Hispanic Americans, Subcontinent Asian Americans, and Native Americans. The previous 8(a) process required Service-Disabled Veterans, and those with handicaps, to present more than 20 statements detailing their experiences with handicap bias, resulting in denial rates exceeding 50%. Challenging a denial involved lengthy and costly OHA appeals process. Historically, I had only one or two clients per year who successfully became 8(a) Certified, representing a high barrier for even the most socially disadvantaged individuals.

To assist Service-Disabled Veterans and individuals with disabilities, the SBA established pathways through the SDVOSB program and the AbilityOne Program.

WHY HANDICAP INDIVIDUALS STILL WANT 8(a): The 8(a) Certification offers a vital avenue for firms to gain both sole-source and set-aside contracts. Although the SDVOSB Certification is highly beneficial for the Veterans Administration, the 8(a) Certification provides advantages with other federal agencies. Holding both certifications creates a more robust route to success in federal contracting.

NEW REQUIREMENTS: The Ultima Services Corp decision mandates that all applicants submit a narrative, not solely those from non-presumed groups like individuals with disabilities. Additionally, applicants must now provide two stories—no more, no less—and third-party verification is no longer required.

TIME TO ACT: Individuals with disabilities are currently treated the same as other applicants for the 8(a) Certification. If you've been considering applying for 8(a) Certification, now is an optimal time before any changes from Congress potentially impact this opportunity. 

If you're uncertain about whether your experiences qualify you as socially disadvantaged due to gender bias, please reach out to an industry expert such as ez8a. They can help you review any and all program requirements and hurdles to certification. They do not charge for an initial consultation.

NOTE: Historically, the SBA has primarily approved physical or visible handicaps to substantiate claims of bias or discrimination. ez8a is open to discussing cases involving other types of injuries—however, they set clear expectations to avoid disappointment. In some instances, they may still advise your group to apply, but want to ensure you have realistic expectations before reaching out.