The Statutory Authority of the SBA 8(a) and WOSB Programs

By TED ROSE, ROSE FINANCIAL SOLUTIONS

 The U.S. Small Business Administration (SBA) administers several programs designed to support disadvantaged and women-owned businesses in securing federal contracts. Two of the most notable programs, the 8(a) Business Development Program and the Women-Owned Small Business (WOSB) Program, have clear statutory authority under federal law. Understanding their legal foundation is critical for participants, contracting officers, and policymakers.

The 8(a) Business Development Program: Statutory Authority

The 8(a) Business Development Program is explicitly authorized under Section 8(a) of the Small Business Act (15 U.S.C. § 637(a)). This statute empowers the SBA to enter into procurement contracts with federal agencies and to subcontract the performance of these contracts to small businesses owned by socially and economically disadvantaged individuals.

Key Statutory Provisions

• 15 U.S.C. § 637(a)(1): Authorizes the SBA to assist small businesses owned by socially and economically disadvantaged individuals by allowing them to receive federal contracts through sole-source and competitive-bid opportunities.
• 15 U.S.C. § 637(a)(6)(A): Defines "socially disadvantaged individuals" as those subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group.
• 15 U.S.C. § 637(a)(6)(B): Establishes economic disadvantage criteria, requiring evidence of diminished capital and credit opportunities compared to others in the same business field.
• 15 U.S.C. § 637(a)(16): Provides the SBA with the authority to establish procedures and criteria for the program's operation.
  

The 8(a) Program is further regulated by 13 C.F.R. Part 124, which outlines eligibility criteria, participation terms, and program benefits.

The Women-Owned Small Business (WOSB) Program: Statutory Authority

The WOSB Program is authorized under 15 U.S.C. § 637(m), which directs the SBA to establish a program to provide federal contracting preferences to small businesses owned and controlled by women. This program includes the Economically Disadvantaged Women-Owned Small Business (EDWOSB) Program, which provides additional benefits to women entrepreneurs facing financial barriers.

Key Statutory Provisions

• 15 U.S.C. § 637(m)(2): Authorizes federal contracting officers to restrict competition to WOSBs in industries where women are underrepresented.
• 15 U.S.C. § 637(m)(3): Establishes the criteria for economic disadvantage under the EDWOSB designation.
• 15 U.S.C. § 637(m)(5): Requires the SBA to conduct a study identifying industries where women-owned businesses are underrepresented and to update the program accordingly.
• 15 U.S.C. § 637(m)(7): Mandates certification procedures to ensure program integrity... Read more in the ROSE Community.
  
  

Want to read the full article?

📢 Join ROSE Business Forum & Events to gain exclusive access to industry insights, discussions, and networking opportunities tailored for GovCons, Nonprofits, and Growing Businesses.

🔗 Register for Free Today

Ted Rose

President, CEO, and Founder

In 1994 Ted Rose founded Rose Financial Solutions (ROSE), the Premier U.S. Based Finance and Accounting Outsourcing Firm. In 2010, the Blackbook of Outsourcing named ROSE the #1 FAO firm in the world based on client satisfaction. As the president and CEO of ROSE, he provides executives with financial clarity. Ted has also acted as the CFO for a number of growth companies and assisted with various rounds of financing and M&A transactions.