Small Business Association (SBA) 8a Certification Requirements
A SBA 8a certification is beneficial for small businesses because it gives them access to contracts that are "set-aside" by the government and corporations who do business with the government. These agencies and corporations are required to spend 20% of their budget on small, disadvantaged companies who have a high likelihood of succeeding if given a monetary boost. It is also beneficial because even during a recession, the government and corporations must continue spending at least 20% of their funds on small businesses to help stimulate economic growth.
Before you apply for an SBA 8a certification, though, you should keep in mind a few requirements that will help you figure out if it is right for you. For example, you should look at your target customers and ensure the contracts you would receive ask for things your company can supply.
Small Business Association
The SBA definition of small business is a "small, disadvantaged company", or a business that is under a $250,000 personal net worth, the equity in a personal residence or business. Making attempts to hide assets from the SBA is not advised, as they have a variety of tools and resources to help them determine the size of a business.
The SBA will also want to see that your business has been running for at least two years, is currently in business, and has enough working capital and business contracts to ensure a high likelihood of success; they do not want to invest in businesses that are likely to flop. The only clause that may be overlooked is the two year requirement; if your business has a track record of completing contracts and has generated profits, you may request a waiver.
8a Certification
When filling out a SBA 8a certification application, the person applying for the business must be the majority owner, and involved in its day-to-day management. You must also be a US citizen. If you fit all of these requirements, you may find applying a solid financial investment.
A SBA 8a certification can bring significant income to a small business. However, the process for obtaining one can be time confusing and confusing, especially if you are unfamiliar with the process. Fortunately, there are a number of businesses who will help you fill out the application form correctly, and write supporting documents. Outsourcing this work can be vital for a business that does not have the time to spend trying to figure out how the process works; outsourcing it also ensures that it is done professionally and in a timely manner.
For more information regarding the SBA 8a certification process, please visit our web page or Contact Us at 407-857-9002.
Article submitted by Shannen Constable, BizCentral USA service consultant.














