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The SBA requires all applicant to complete a Narrative of Social disadvantage. In this article, I will be discussing the following.

1. What is the Narrative Statement of Social Disadvantage?

2. Why does the SBA require it?

3. How should you write it?

1. What is the Narrative Statement of Social Disadvantage?

The Narrative Statement of Social Disadvantage is a story an applicant writes about themselves on instances in their life where they have experienced some type of set back due to their racial background. To prove social disadvantage, the individual(s) owners must ultimately show that such personal experiences had a negative impact on entry into or advancement in the business world.

2. Why does doe SBA require it?

The SBA states that certain minority groups are designated as socially disadvantaged. That is, these groups throughout the course of history, are believed to have experienced racism. Of course, not everyone experiences this, and those who have, unfortunate as that may be, need to explain how and why to be eligible for the 8(a) program. The 8(a) program, as sated in our last articles, helps level the paying field for minorities, giving them greater opportunities to complete in a more fair playing field.

3. How Should You Write It?

The answer here is simple. Truthfully. Successful narratives are written starting with their childhood experiences, leading up to college and finally in the work force. I met with a Mexican American client today, and he didn’t quite understand how he was socially disadvantaged. Initially he could not think of any stories, but after asking him a few simple questions on his high school years and his career, he began to think of specific moments in his life that he at first did not realize what were inevitably socially inappropriate remarks by his peers. For example, accusations of fraud based on his skin color was one. A second was a teacher thinking he was cheating because he earned a high score on an exam. He was asked to retake the test in a separate room and scored an A. The teacher never questioned him again. Traumatic. I know.

Unfortunately, it’s stories like these that have kept minorities from excelling in this great country and these stories need to be told. Hence, the SBA wants to make certain that individuals applying for the 8(a) Certification have been one time or another Socially Disadvantaged.


Paul Mazbanian SBC Consultants, Inc. 818-551-9400
Paul Mazbanian
SBC Consultants, Inc.