Should you enroll your business in the U.S. Small Business Administration 8(a) program? Here’s some information to consider to help you decide.

First, what is the 8(a) program? According to the SBA: “The 8(a) program is a robust, nine-year program created to help firms owned and controlled by socially and economically disadvantaged individuals.”

The program is designed for socially and economically disadvantaged small business owners who’ve already been in business for at least two years or more. It’s not a program for new businesses or startups.

What benefits does your business derive from the 8(a) program? Here are some of the benefits:

Training and technical assistance designed to strengthen your ability to compete.

Federal contracting preferences, including 8(a) set-aside contracts in competition with other businesses in the 8(a) program as well as sole-source contracts.

One-on-one business development assistance from dedicated business opportunity specialists for the nine-year term of program participation.

Potential joint ventures with established businesses to increase capacity.

The 8(a) certification is a tool that opens access to many federal government opportunities that are otherwise off limits. Having 8(a) certification doesn’t guarantee government contracts or preclude you from competing for other government or commercial contracts for which your business is qualified. You can still submit proposals for other set-aside programs, assuming you meet the requirements, including those for small businesses, woman-owned businesses or service-disabled veteran-owned small businesses.

How does your business qualify for the 8(a) program? Some of main requirements:

Be a small business based on your North American Industry Classification System codes. Check the website at www.sba.gov/size-standards/index.html.

Be at least 51 percent owned and controlled by U.S. citizens who are socially and economically disadvantaged.

Demonstrate the potential for success — such as having been in business for two years.

Meet asset, net worth and adjusted gross income limitations.

Be of “good character.”

The 8(a) program is really a nine-year business life cycle development system. You must start as a going concern that’s been in business at least two years and has a number of documented clients or customers. You spend the first four years in a development stage and the final five years in a transition phase, preparing to “fledge” and re-enter the fully competitive world with the benefits of counseling, support, set-asides and training.

An 8(a) application is submitted to the SBA and involves the following three basic — but complicated — steps. Start at the System for Award Management website at www.sam.gov and then:

Identify your primary NAICS code or codes.

Register your business at www.sam.gov.

Apply for 8(a) certification with the SBA.

Keep in mind you must recertify your business meets the qualification criteria for 8(a) certification every year. If your assets, adjusted gross income or net worth exceed limits, you could have to leave the program early.

It’s important to develop a plan for exiting the 8(a) program. You might be able to sell your business to another business that qualifies as an 8(a) or you could re-enter the business market as a traditional company. Without a well thought-out plan, everything you worked so hard to build could fade away. As a general rule, only 8(a) certified businesses can take over 8(a) awarded contracts, so planning is essential.

For additional information, visit the SBA website for the 8(a) program located at www.sba.gov/federal-contracting/contracting-assistance-programs/8a-business-development-program.

Seek out SBA and qualified legal, business and tax advice before embarking on the 8(a) or other business processes. The preceding material is not intended as tax, legal, business or other advice.