Eligibility Overview of the SBA 8(a) Program
If you are a small business owner, you may want to consider applying for the SBA 8(a) program.
Here are key points to consider before investing time into the SBA 8(a) application process.
In Business - Only firms currently in business will be considered for certification.
Applicants must be the majority owners and involved as full-time in the business to meet eligibility requirements.
Two Year Eligibility - The 8(a) program requires applicants to be in business for at least two years before their application will be considered for approval.
Exceptions to this rule are sometimes granted.
In such cases, a waiver must first be granted by the SBA.
Note: your business must be generating revenues to meet the waiver requirement.
This does not mean you have to been making huge profits, but you do have to show invoices and income from the area you are proposing to be certified in.
Business Plan in Place - Sound business management is core to the success of participating 8(a) certified firms.
A key aspect of good management is business planning.
Prospective 8(a) firms should have a current, well thought out business plan before applying to the program.
Not all industry categories are in high demand as resources for government contracts.
The categories noted above are prevalent in the federal procurement arena, especially as 8(a) certified vendors.
The federal government buys over $300 billion annually in goods and services.
Prospective 8(a) candidates should carefully consider the buying needs of federal agencies, relative to the products and services they provide.
Previous contract work - Businesses with contract work experience are better prepared to enter into federal prime or subcontracting contracts.
Dun & Bradstreet, CCR Registration - Being listed in both of these registries is a requirement before you can apply for SBA 8(a) status.
Business Plan / Basic Financial Documents - Balance Sheet and Profit / Loss Statement Sound financial management is critical to business success.
A company's financial capacity and performance are always considered by federal agencies before awarding contracts.
Social and / or Economic Disadvantage - Only applicants who are members of social disadvantage groups can be considered for approval to the program.
Economic disadvantage is an eligibility requirement of the 8(a) program and it is defined as a personal net worth of $250,000 or greater, excluding the equity in a personal residence or business.
US Citizenship - Only applicants who are US citizens are eligible to apply for 8(a) status.
Each year the federal government sets aside millions of contract dollars for qualified small businesses to bid and receive contracts relating to the many federal agencies.
The designation of SBA 8(a) is a coveted program certification.
Many federal contracts are "set aside" for 8(a) firms, meaning that only certified businesses may apply or be considered.
To become SBA 8(a) certified, a business owner must take the time to apply for and receive certification.
Here are key points to consider before investing time into the SBA 8(a) application process.
In Business - Only firms currently in business will be considered for certification.
Applicants must be the majority owners and involved as full-time in the business to meet eligibility requirements.
Two Year Eligibility - The 8(a) program requires applicants to be in business for at least two years before their application will be considered for approval.
Exceptions to this rule are sometimes granted.
In such cases, a waiver must first be granted by the SBA.
Note: your business must be generating revenues to meet the waiver requirement.
This does not mean you have to been making huge profits, but you do have to show invoices and income from the area you are proposing to be certified in.
Business Plan in Place - Sound business management is core to the success of participating 8(a) certified firms.
A key aspect of good management is business planning.
Prospective 8(a) firms should have a current, well thought out business plan before applying to the program.
Not all industry categories are in high demand as resources for government contracts.
The categories noted above are prevalent in the federal procurement arena, especially as 8(a) certified vendors.
The federal government buys over $300 billion annually in goods and services.
Prospective 8(a) candidates should carefully consider the buying needs of federal agencies, relative to the products and services they provide.
Previous contract work - Businesses with contract work experience are better prepared to enter into federal prime or subcontracting contracts.
Dun & Bradstreet, CCR Registration - Being listed in both of these registries is a requirement before you can apply for SBA 8(a) status.
Business Plan / Basic Financial Documents - Balance Sheet and Profit / Loss Statement Sound financial management is critical to business success.
A company's financial capacity and performance are always considered by federal agencies before awarding contracts.
Social and / or Economic Disadvantage - Only applicants who are members of social disadvantage groups can be considered for approval to the program.
Economic disadvantage is an eligibility requirement of the 8(a) program and it is defined as a personal net worth of $250,000 or greater, excluding the equity in a personal residence or business.
US Citizenship - Only applicants who are US citizens are eligible to apply for 8(a) status.
Each year the federal government sets aside millions of contract dollars for qualified small businesses to bid and receive contracts relating to the many federal agencies.
The designation of SBA 8(a) is a coveted program certification.
Many federal contracts are "set aside" for 8(a) firms, meaning that only certified businesses may apply or be considered.
To become SBA 8(a) certified, a business owner must take the time to apply for and receive certification.
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