The Small Business Administration (SBA) has strict requirements for Section 8a certification. The SBA created the 8a Certification program in the 1960s. The 8a certification program allows small disadvantaged businesses an opportunity to obtain business within the federal procurement market. The SBA runs the 8a program which is also known as the SBA 8a. The SBA 8a certification requirements outlined by the SBA provides a guide which helps businesses determine if they are good candidates for the 8a certification program.
The SBA 8a certification exists to provide a level playing field to members of Americans who have encountered discrimination and belong to disadvantaged groups. Disadvantaged groups include those of Hispanic, Asian, African, or Native American descent. The Native American groups include those members of Indian tribes as well as Native Alaskan and Hawaiians. Other eligible groups include those who have experienced discrimination. They include those with disabilities, certain veteran status, gender, and other factors. White women and disabled individuals have benefited from a recent review of past regulations. White women currently only constitute 2.3 percent of federal contract awards. President Obama wants to double that amount.
If an applicant does not fit in the aforementioned categories, they have to prove proof of discrimination or disadvantaged status. In addition to the aforementioned factors, there are other requirements for Section 8a certification. They include the following core sba 8a certification requirements.
(1) Applicants must be American citizens.
(2) Applicants must own a majority of 51 or more percent of the company and run the day-to-day operations of the company.
(3) The applicants must focus full-time on the business. Status as a full time student is not allowed.
(4) Board members must also be from qualified disadvantaged groups.
(5) The business must have filed two consecutive years of income tax returns. If the business has fewer than two years of income tax filings, it must apply for a waiver. Though the odds are not favorable, businesses are encouraged to apply and can self-certify.
(6) All state and federal income tax obligations must be paid. The owner must have a net worth under $250,000 (excluding personal home). There is also an income limit of $200,000 average for the two years. The applicant’s assets must be under $4 million not including liabilities. Non-profits nor brokers are eligible to apply.
(7) All applicants must be of good moral character and pass a criminal background check by the Federal Bureau of Investigation (FBI). The application, interview, and background check will help in determining your eligibility for the 8a certification.
If all of the above 8a certification requirements are satisfied, applicants are eligible to win awards up to $4 million for goods and services and $6.5 million for manufacturing. Companies are allowed to participate in a developmental stage for 4 years and a transitional stage for 5 years. The goal is to get companies to “graduate” after 9 years so they can thrive without the preferences of 8a certification.
The federal government is the largest corporation in the world. If you believe that your company is eligible then you should apply.
Contact Us Today
The SBA 8a Certification Attorneys at Kleiner & Cazeau are experienced and available to help you obtain your 8a certification.
Call us at (305)517-1392 Ext: 102