The term “terminate” is used to refer to a Participant’s exit from the 8(a) BD Program prior to the expiration of its program term for good cause. Examples of good cause include, but are not limited to the following:

Submission of false information in the concern’s 8(a) BD application, regardless of whether correct information would have caused the concern to be denied admission to the program, and regardless of whether correct information was given to SBA in accompanying documents or by other means.

• Failure by the concern to maintain its eligibility for program participation.
• Failure by the concern for any reason, including the death of an individual upon whom eligibility was based, to maintain ownership, full-time day-to-day management, and control by disadvantaged individuals.
• Failure by the concern to obtain prior written approval from SBA for any changes in ownership or business structure, management, or control.
• Failure by the concern to disclose to SBA the extent to which non-disadvantaged persons or firms participate in the management of the Participant business concern.
• Failure by the concern or one or more of the concern’s principals to maintain good character.
• A pattern of failure to make required submissions or responses to SBA in a timely manner, including a failure to provide required financial statements, requested tax returns, reports, updated business plans, information requested by SBA’s Office of Inspector General, or other requested information or data within 30 days of the date of request.
• Cessation of business operations by the concern.
• Failure by the concern to pursue competitive and commercial business in accordance with its business plan, or failure in other ways to make reasonable efforts to develop and achieve competitive viability.
• A pattern of inadequate performance by the concern of awarded section 8(a) contracts.
• Failure by the concern to pay or repay significant financial obligations owed to the Federal Government.
• Failure by the concern to obtain and keep current any and all required permits, licenses, and charters, including suspension or revocation of any professional license required to operate the business.
• Excessive withdrawals, including transfers of funds or other business assets, from the concern for the personal benefit of any of its owners or any person or entity affiliated with the owners that hinder the development of the concern.
• Unauthorized use of SBA direct or guaranteed loan proceeds or violation of an SBA loan agreement.
• Conduct by the concern, or any of its principals, indicating a lack of business integrity. Such conduct may be demonstrated by information related to a criminal indictment or guilty plea, a criminal conviction, or a judgment or settlement in a civil case.
• Willful failure by the Participant business concern to comply with applicable labor standards and obligations.
• Material breach of any terms and conditions of the 8(a) BD Program Participation Agreement.
• Willful violation by a concern, or any of its principals, of any SBA regulation pertaining to material issues.

The new and improved 8(a) Program has become an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. The SBA has helped thousands of aspiring entrepreneurs over the years to gain a foothold in government contracting. Participation is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage. In fiscal year 1998, more than 6,100 firms participated in the 8(a) Program and were awarded $6.4 billion in Federal contract awards.

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• Personnel records
• Payroll records
• Rejection letters on job applications
• Denials of credit application
• Documents relating to rejected contract offers, i.e., bid abstracts, solicitations, etc.
• Contemporaneous records memorializing meetings, conversations, negotiations, telephone calls, etc.
• Documents setting forth company policy(ies) which are alleged to be discriminatory.
• Evidence which tends to show generalized patterns of discrimination against a non-designated group or statistical data showing that businesses owned by a specific non-designated group are disproportionately underrepresented in a particular industry may be used to augment an individual’s case. Statistics and generalized patterns are not sufficient by themselves to establish a case of individual social disadvantage. However, an individual’s statement of personal experiences in combination with the generalized evidence may be sufficient to demonstrate social disadvantage.

• Black Americans
• Hispanic Americans
• Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians)
• Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan; Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru; Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal)
• Members of other groups designated by the SBA

An individual must show at least one objective distinguishing feature that has contributed to social disadvantage, such as race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society, or other similar causes not common to individuals who are not socially disadvantaged:

• Personal experiences of social disadvantage stemming from the objective distinguishing feature or features set forth in the preceding paragraph. The experiences must have been in American society, not in other countries, and must have been substantial and chronic.
• Negative impact on entry into or advancement in the business world because of the disadvantage. SBA considers any relevant evidence in assessing this element. In every case, however, SBA considers education, employment and business history, where applicable, to see if the totality of circumstances shows disadvantage in entering or advancing in the business world.

• Manufacturing: Maximum number of employees may range from 500 to 1500, depending on the type of product manufactured;
• Wholesaling: Maximum number of employees may range from 100 to 500 depending on the particular product being provided;
• Services: Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided;
• Retailing: Annual receipts may not exceed $5.0 to $21.0 million, depending on the particular product being provided;
• General and Heavy Construction: General construction annual receipts may not exceed $13.5 to $17 million, depending on the type of construction;
• Special Trade Construction: Annual receipts may not exceed $7 million; and
• Agriculture: Annual receipts may not exceed $0.5 to $9.0 million, depending on the agricultural product.

• Must be a small business
• Must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States
• Must demonstrate potential for success

To apply for the program, contact your SBA District Office.

For additional information:
8(a) BD – Mentor-Protégé Program
US Small Business Administration
409 – Third Street, SW
Washington, DC 20416
Phone: (800) 827-5722

• that it enjoys favorable financial health, including profitability for at least the last two years
• that it is a federal contractor in good standing
• that it can provide valuable support to a protégé through lessons learned and practical experience gained from the 8(a) BD program, or through its general knowledge of government contracting.

Generally, a mentor will not have more than one protégé at a time without SBA authorization.

• It must be in the developmental stage of the 8(a) BD program
• or have never received an 8(a) contract
• or have a size of less than half the size standard for a small business based on its primary SIC code
• It must be in good standing in the 8(a) BD program and be current with all reporting requirements

Protégés have only one mentor at a time.