There are many components to the 8a certification process that determine whether a company is ready to apply. The following is a list of items that help demonstrate to the SBA that the company is ready to begin working for the Federal Government and will be able to successfully complete the contracts that are awarded to it.
The basics:
1. You must be a US citizen to apply to be part of the 8a program.
2. You must be socially disadvantaged by belonging to three different classes of people.
For. A minority as designated by the SBA
B. 30% disabled veteran on duty
vs. White female, although no presumption of social disadvantage is presumed
3. You must have all the necessary certification to perform the work that your company will provide to the federal government.
4. Your business should assume your ultimate entity type, for example, converting from a sole proprietorship to a corporation.
5. All tax returns must be current and the owner and business must not be behind in any tax liability.
6. All SBA loans must be current.
7. The company must have at least three clients and none of the clients must represent more than 70% of the company’s income.
8. Your business must be registered with CRR and registered with Dun and Bradstreet.
More advanced:
1. Ideally, the company has been in business for the past two years. This must be evidenced by the company’s tax returns.
2. The business owner must have a high degree of competence, as evidenced by titles and past management experience. A well-developed resume should accompany any application for 8a.
3. Ideally, the company has successfully performed work on government contracts. This is especially important if the duration of the company in business is less than two years.
4. The business owner must be able to demonstrate active participation in the socially disadvantaged group of which he is a member. Have your reference letters ready.
5. The business owner must have well-documented discrimination cases that prevent his business from growing as fast as it could without the presence of discrimination.
6. The financial statements of the company should be as current as possible by the date of the request.
7. The company must have access to adequate capital to execute government contracts.
8. All necessary bonds and insurance to execute government contracts must exist in the company’s primary NAICS code.
9. The company’s revenue is ideally over $ 250,000 in the past year. If the company’s revenue was less than $ 250,000, then an ideal applicant will complete the following steps to increase their application.
For. Have a well-developed business plan for the applicant company 8a.
B. The business owner will have taken classes that are designed to teach the owner how to successfully bid on government contracts.
Obtaining the SBA 8a certification is a challenging process. Following the checklist above will ensure that your business has all the parts in place before your application is submitted to the SBA.
