It’s hard not to enjoy a feel-good zero-to-hero story. Watching someone start from nothing and bring themselves to greatness is inspiring and reminds us that with the right amount of work and dedication, nearly anything is possible. LeBron James grew up in poverty and went on to become one of the greatest, if not the very greatest, basketball players of all time. Under Armour started in a basement and Microsoft, Google, and Apple all started out in garages. With proper development, people and businesses can achieve success, but starting out is not easy, especially if you come from an economically and socially disadvantaged background. That exact scenario is why the US Small Business Administration (SBA), which John Marshall Bank extensively partners with, created the SBA 8(a) Business Development program.
The 8(a) Business Development Program
The 8(a) program is a nine-year program created and run by the SBA with the purpose of helping and developing qualifying firms that are owned and controlled by socially and economically disadvantaged individuals. Businesses that participate in the program get specialized training which includes technical, management, and financial assistance, allowing each business to effectively compete in the American economy and keep up with juggernaut-sized corporations. The SBA partners with multiple federal agencies to ensure that any business in the 8(a) program gets the most out of their experience and subsequent contracting opportunities once their time in the program has concluded.
Aside from development assistance and training, the 8(a) program offers businesses with a collection of benefits which include:
- The opportunity to partner with established businesses in order to increase your capacity.
- The knowledge from well-experienced and capable firms through the SBA’s Mentor-Protégé program.
- The expertise from compliance experts who can help you navigate the government’s regulations when it comes to growing your business, financing that growth, and seeking out government contracts.
- The ability to take advantage of the SBA’s Empower to Grow program, which provides free training and specialized training to fit your business’ requirements.
- The accessibility of many other benefits which are all listed on the SBA’s website
Qualifying and Joining the 8(a) Business Development Program
Much like the SBA’s 7(a) loans, which are purpose-built for small businesses, the 8(a) program has a list of requirements before your business can join. The first of these requirements is that your business has to be a small business, it is the Small Business Administration, after all. Other requirements are:
- Your business can not have previously participated in the 8(a) program.
- You must demonstrate potential for success which you can do by being in business for two years while additionally demonstrating good character.
- Your business must be at least 51% owned and controlled by US citizens who are socially and economically disadvantaged. Guidelines for this can be found in the Code of Federal Regulations.
- You must have a personal net worth of $850,000 or less, an adjusted gross income of $400,000 or less, and assets totaling $6.5 million or less.
If you and your business meet all of the requirements, head over to the SBA’s 8(a) certification page to apply.
John Marshall Bank’s Part in Your Business’ Story
So, where does John Marshall Bank and our team of business and SBA experts come in? Simply put: all throughout the 8(a) process. While we don’t administer the program ourselves, that’s solely the SBA’s job, our team works extensively with small businesses throughout the DC Metro area to provide them with the service, financial products, and development assistance they need. Maybe you aren’t sure if you fit the 8(a) requirements, or you need the right financial partner to get you to the two-year mark, or you’re fresh out of the 8(a) program and are looking to grow your business with the tools and knowledge you gained from your experience. Regardless of your situation, the John Marshall Bank team can help navigate your next steps. Don’t just take our word for it, view the testimonials from our customers to see what John Marshall Bank looks like in action.
We know this program is very beneficial to government contractors which is why our dedicated government contracting team is standing by ready to provide your firm the tools and financing it needs while it participates in the 8(a) program.
While you apply for the 8(a) program with the goal of enhancing your business with all of its benefits, and even after completing the program, John Marshall Bank is ready to be your financial partner through it all. It’s not just financial products like SBA 7(a) loans or fraud prevention tools like Positive Pay. Our team offers financial advice and planning assistance, along with an easy-to-reach point of contact who cares about your business. When you partner with John Marshall Bank, you partner with a Bank committed to your success.