8(a) Social Disadvantage Narrative

The SBA explains it best:

“To participate in the 8(a) Business Development Program (8(a) Program), a firm must be 51% owned and controlled by socially and economically disadvantaged individuals. New applicant owner or owner(s) who are claiming social and economic disadvantage can demonstrate their individual social disadvantage through one of two options: by writing a narrative or by completing the fillable questionnaire in SBA Certify – Small Business Administration | SBA Certify – Small . Existing Program participants should prepare their narrative and upload it to Certify.

Definition

The definition of social disadvantage means that an individual has been subjected to racial, ethnic, or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. See 13 CFR 124.103(c).

An individual only needs to establish social disadvantage once for the entirety of the program term.

Determining Disadvantage

The SBA must determine that the discrimination or bias experienced by an individual is chronic, substantial, and has occurred within American society (not within another country). Additionally, the discrimination must have negatively impacted your entry or advancement in the business world.

Key Elements of Social Disadvantage

To demonstrate social disadvantage, business owner(s) should include the following elements:

An indication of which identity or identities is/are the basis of social disadvantage.
Descriptions of incidents in which bias or discrimination has occurred.

For business owner(s) who choose to write a narrative, generally a length of at least three pages is sufficient, but it may be more or less.

Business owner(s) who choose to complete the questionnaire can input a maximum of 1,000 characters per each fillable field. SBA can request additional information, if needed.

Indication of Identity

Clearly describing which identity or characteristics you possess which have been subject to discrimination helps SBA understand your experience and eligibility for the 8(a) Program.

Race, Religion, Ethnic Origin, Gender, Sexual Orientation, Identifiable Disability, Isolation from American Society, and others are all categories of identities/characteristics which have formed the basis of successful social disadvantage submissions. It is important to specify the identities/characteristics within the category/categories which form the basis of your social disadvantage (e.g., Subcontinent Asian American Woman are specific identities within the Race and Gender categories).

One identity/characteristic is sufficient to establish social disadvantage, although individuals with multiple identities/characteristics may wish to specify more than one, as it is often difficult to determine which single characteristic is subjected to discrimination.

Descriptions of Incidents

An individual should typically provide two incidents of bias to establish chronic and substantial social disadvantage. One incident may be enough to establish social disadvantage if it is pervasive or recurring. SBA recommends limiting yourself to two examples to avoid unnecessary delays during the review process.

Experiences should be related to education, employment, and business history (including current or previously owned companies). Here are some broad types of experiences which may establish social disadvantage. Examples are included later in the document.

Education – SBA considers factors such as: denial of equal access to institutions of higher education; exclusion from social and professional association with students or teachers; denial of education honors rightfully earned; and social patterns or pressures which discouraged the individual from pursuing a professional or business education.
Employment – SBA considers factors such as: unequal treatment in hiring; promotions and other aspects of professional advancement; pay and fringe benefits; other terms and conditions of employment; retaliatory or discriminatory behavior by an employer; and social patterns or pressures which have channeled the individual into nonprofessional or non-business fields.
Business history – SBA considers factors such as: unequal access to credit or capital; acquisition of credit or capital under commercially unfavorable circumstances; unequal treatment in opportunities for government contracts or other work; unequal treatment by potential customers and business associates; and exclusion from business or professional organizations.

For each incident, please describe who, what, where, why, when, and how discrimination or bias occurred. Incidents are more readable if they provide information in the following order within a narrative:

When – Explain when the discriminatory conduct occurred. Exact dates, where available, are preferred but are not necessary so long as the incident provides a specific time period. This discrimination can be from any period of your life; you do not need to be experiencing current discrimination to qualify.
Where – Explain where the discriminatory conduct occurred. The incident must have occurred in American society.
Who – Explain who committed the discriminatory action. This could include an individual, a group of individuals, or an institution. Individual names, where available, are preferred but not necessary so long as the incident provides a specific figure or organization.
What – Explain the discriminatory conduct.
Why – Explain the reason(s) that the conduct was more likely motivated by bias or discrimination than other non-discriminatory reasons. Without additional facts, a mere assertion that the action was the result of bias or discrimination is will not be enough to support a claim of social disadvantage.
How – Explain how each instance of discriminatory conduct impacted your entry into or advancement in the business world. Offensive comments or conduct, while reprehensible, will not support a claim of social disadvantage if there is no negative impact associated with the incident.”

Guide Example:

Incident 1

When: November 25, 2020

Where: ABC Corporation in [City, State]

Who: Jane Smith, VP for Human Resources, ABC Corporation

What: I had been working for ABC Corporation for three years when a site manager position became available. I applied but my co-worker, Emily, got the job.

Why: I requested a debrief with Jane because I had more experience and a higher trade certification than Emily. Jane stated that the company needed someone who could inspect active and/or dangerous jobsites. I reiterated, just as I had during my interview, that I was capable of performing all aspects of the site manager role to include on-site inspections. Emily does not have a physical disability like I do. For these reasons, I believe Emily was selected over me due to unfounded stereotypes associated with my physical disability.

How: Had I received the site manager promotion, I would have earned an additional $20,000 a year. This extra income would have allowed me to accumulate capital faster and start my business three years earlier than I did.

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