Joining the SBA’s 8(a) program has transformed Joe Vazquez’s company.
In 2008, the first year Joe Vazquez was in business for himself, he made $38,000. Today, Vazquez Commercial Contracting is earning about $1 million each month.
Vazquez credits his Kansas City company’s success to God and the U.S. Small Business Administration’s 8(a) Business Development Program.
It’s a nine-year program for the owners of small, disadvantaged businesses. Participants are provided business counseling, specialized training and other assistance. They are also eligible to seek sole-source contracts from federal agencies.
Vazquez remembers the exact day he was accepted into 8(a): July 19, 2010, around 2 in the afternoon. After he got the good news in an email, he said, he even teared up a little “because I knew how important the opportunity was.”
Who Can Qualify for 8(a)?
8(a) companies must be majority-owned and controlled by people who are both socially and economically disadvantaged.
If an entrepreneur is a Hispanic American, African American, Native American, Asian Pacific American or Subcontinent Asian American, that person is presumed to be socially disadvantaged. However, it’s possible for others to meet that standard if they can show that they’ve experienced substantial and chronic social disadvantage that has held back their business.
Economically disadvantaged persons are those with limited access to the credit and capital required to compete in business. Their net worth must be less than $250,000, and their assets cannot be greater than $4 million. Their personal income, averaged over three years, can’t exceed $250,000.
There are other requirements that 8(a) applicants must meet. You can find a complete list at www.sba.gov/content/8a-requirements-overview.
Building Knowledge and Capacity
Is there a fair amount of paperwork involved in seeking 8(a) status? Yes. It didn’t bother Vazquez, who previously worked as a certified public accountant. “When it came to the paperwork,” he said, “that’s kind of second nature to me.”
While the 8(a) program can open doors for small businesses, it does not automatically guarantee work. Owners need to pursue contracts, and they need to deliver excellent service. “You have to go out there and bust your butt,” Vazquez said.
The hard work has been worth it. Vazquez Commercial Contracting has brought in $15 million to $20 million over the past three years. Twelve months ago, the company employed five people, and this month, the head count is more than 20.
Vazquez has only a few more years in 8(a). But he said the program—which includes training on proposal writing, marketing to government agencies and more—has helped him develop the capacity and skills to continue growing his business.
“It’s just been a phenomenal ride over the past couple of years.”
Would your company be a good fit for the 8(a) program in Kansas City? Contact Barbara Caldwell in the SBA’s district office at (816) 426-4900.
