A Social Disadvantage Narrative is now require of ALL 8(a) applicants -- and also ALL existing 8(a) firms.
Background: A legal requirement for 8(a) Program eligibility is that the firm must be be majority owned, controlled and run on a day-to-day basis by an individual who is both socially and economically disadvantaged.
In July of 2023, a federal court ruled that it was unconstitutional for SBA to presume the social disadvantage of ANY ethnicity. Prior to that ruling, SBA was allowed to presume that Black, Hispanic, Native, Asian-Pacific and Indian Subcontinent Americans met the social disadvantage eligibility requirement established by law for entrance into the 8(a) Program.
Others could claim they were socially disadvantaged, but they had to prove it on an individual basis by developing a highly detailed narrative description of specific incidents of bias or discrimination due to some identifiable trait that had happened to them that had a negative material impact on their progress and their ability to start and develop their business.
Now ALL applicant for SBA 8(a) Certification -- as well as ALL existing 8(a) firms have to do that.
Preponderance of the evidence: The narrative, which becomes the sworn testimony of te applicant, must meet the legal standard of proving the applicant's claim of social disadvantage by the preponderance of the evidence. An SBA lawyer is assigned to review the testimony and determine if the legal standard has been met. If not, the 8(a) applicantion will not be approved.
Expert guidance is necesary: Applicants who attempt to prepare their Social Disadvantage Narrative without expert guidance are almost never approved. Do not make that mistake.
ARA Consulting has the experience: Joe Donnini ran the SBA 8(a) Certification Office for 27 years and knows exactly what SBA is looking for. Every social disadvantage narrative that Joe has assisted clients to prepare (hundreds) has been approved by SBA. No one else has that track record.