What Is an 8A Government Grant?

Offered under the Department of Health and Human Services, the United States Office of Small and Disadvantaged Business offers 8A grants (as well as 8A loans) to assist qualified small businesses in developing competitive viability.

Purpose

The 8A grant program is meant to foster development in small and disadvantaged businesses.

Existing Business

An 8A grant or loan is available only to small businesses already in existence; grants or loans intended for business start-up are managed by the Small Business Administration (SBA).

Disadvantaged

An important aspect of the 8A program is set aside of funding to promote utilization of small businesses owned by persons disadvantaged either socially, economically or both. Targeted groups include minority small business owners, such as those of Asian, Hispanic, black and Native American heritage.

Small Business

To qualify for 8A eligibility, the business must qualify as a small business; as determined either by number of employees or by amount of revenue. With revenue, the threshold varies, for example, $21 million or less for information technology business but only $6 million for architect-engineering firms.

Grant

An 8A grant, versus a loan, is an outright funding infusion that does not require repayment.

References

• Health and Human Services Department: Office of Small and Disadvantaged Business
• Fedmoney.com Program Objectives