In general, the following basic eligibility requirements must be met to gain approval for the 8(a) program:

• All applicant(s) must be a US citizen. (Applicant = 51% or more owners who is considered the applicant for 8(a) certification disadvantage purposes). Additionally, all applicant(s) must reside in the United States.
• The applicant(s) must devote full-time to the business that is applying for 8(a) certification at the time of application submission. This means they must work at least 40 hours per week, during the normal business operating hours, within the business concern, without any other outside employment.
• The primary applicant must hold the highest management position within the business that is applying for 8(a) certification. Generally, this is the CEO, President in a corporation or Managing Member in an LLC.
• The primary applicant must be able to demonstrate that they are the highest compensated individual. The SBA will most likely deny your 8(a) application if you cannot demonstrate the primary applicant is currently the highest compensated or there is a very good reason why they have elected not to be.
• The applicant(s) must have an adjusted net worth of less than $850,000 at the time they apply for 8(a) certification. Adjusted net worth = Assets – liabilities – (Equity in primary residence + value of ownership interest in business concern + IRA/401(k) or Other Retirement Accounts). Complete our adjusted net worth calculator to help determine yours.
• The applicant(s) AGI (Adjusted Gross Income) cannot be more than $400,000 averaged over the last three tax years.
• The applicant(s) cannot have transferred any personal assets during the last two years to an immediate family member for less than fair market value. If they have, the result of the transfer will be counted back towards their adjusted net worth.
• The applicant(s) must be able to submit a narrative statement of social disadvantage .
• The applicant(s) must generally hold all licenses or professional certifications required to operate the business concern. The only exception is if the individual who holds the required license or professional certification is not an equity owner, and the applicant(s) can prove that they have ultimate supervisory control over this individual.
• The applicant(s), any other owner in the business or anyone else who is considered a key officer, employee or director cannot have any delinquent SBA loans, federal (taxes), state (taxes), liens, or local obligations unless they can provide proof of a payment arrangement agreement with the associated party along with copies of timely payments being made as proof of compliance. All liens must be satisfied.
• The applicant(s), any other owner in the business or anyone else who is considered a key officer, employee or director cannot have used their eligibility to qualify another 8(a) concern or been an officer of another current or past 8(a) participant.
• The applicant(s), any other owner in the business or anyone else who is considered a key officer, employee or director cannot have an immediate family member who is or has been a participant in the 8(a) program unless this other business is in a totally separate line of business and no business has been conducted together.
• The business concern, applicant(s), any other owner in the business or anyone else who is considered a key officer, employee or director cannot have filed for bankruptcy in the last (7) seven years unless the bankruptcy has been discharged by the court.
• The applicant(s), any other owner in the business or anyone else who is considered a key officer, employee or director should generally not be involved in any pending civil lawsuits that could adversely affect the business applying for the 8(a) program.
• The applicant(s) cannot have any ownership in another business concern other than the business concern that is applying for 8(a) certification unless it is an entity solely for the purpose for holding and managing real estate.
• Any other owner in the business or anyone else who is considered a key officer, employee or director who has ownership interest in any other business, other than the business concern that is applying for 8(a) certification may possibly cause the SBA to affiliate the associated business.
• Any other owner in the business or anyone else who is considered a key officer, employee or director who has ownership interest in any other business cannot be the former employer of the applicant(s) for 8(a) certification.
• The applicant(s), any other owner in the business or anyone else who is considered a key officer, employee or director cannot be debarred from doing business with the federal government.
• The applicant(s), any other owner in the business or anyone else who is considered a key officer, employee or director cannot be on probation or parole. If anyone has been arrested in the past it does not automatically deny them unless they were convicted of a specific crime. Having an arrest, regardless of how long ago, will delay the review of your 8(a) application by a minimum of 90 additional days.
• The business concern must be considered a small business by the SBA. Your primary NAICS code, gross sales and sometimes the number of employees define your size standard that the SBA will base its size determination on.
• The business concern must have been in business for two full years. In addition, the last two years of its filed business tax returns must show a reasonable amount of revenues. If it has not, you must seek a waiver and meet the (5) five conditions set by the SBA.
• The business concern and the applicant(s) cannot have any delinquent tax filings or have any any delinquent SBA loans, federal (taxes), state (taxes), liens, or local obligations unless they can provide proof of a payment arrangement agreement with the associated party along with copies of timely payments being made. All liens must be satisfied.
• The business concern must be at least 51% directly owned and controlled by the applicant(s). The business concern must be a for-profit business and cannot be classified as a broker or be a subsidiary of another business concern.
• The business concern’s current year-to-date financial statements, at a minimum, must exhibit positive net income, positive net equity and positive working capital at the time of application submission.
• The business concern cannot be determined to be economically dependent on one of its clients. Please see the 8(a) economic dependency or the 70% rule explained article for further information and to determine if your business would be determined to be economically dependent by the SBA.
• If the business concern has existing management, joint venture, indemnity, consulting, distributorship, license, trust or franchise agreements, the SBA will want to review these in detail.
• If changes of ownership have occurred to the business concern in the past two years, and the current applicant(s) have become the new majority owners, the SBA will want to examine these ownership changes in great detail. This can possibly be an eligibility issue based upon your unique circumstances.
• If the business has ownership in or an affiliation with another business the SBA will want to examine this in detail.
• If another business has ownership in the business concern applying for 8(a) certification, the SBA will want to examine this in great detail.
• If the business concern buys from, sells to, or uses the services or facilities of any other business concern, or conduct business with any other business concern in which any other owner in the business or anyone else who is considered a key officer, employee, other than the applicant(s), the SBA will want to examine this in detail.
• The business concern applying for 8(a) certification cannot have been previously approved for the 8(a) program.
• If any other business concern or anyone who is considered a key officer, employee, other than the applicant(s) provides financial, bonding support, licenses, or required professional certification, office space or equipment to the business concern that is applying for 8(a) certification, the SBA will want to examine this in detail.
• The business concern applying for 8(a) certification cannot have been started with 50% or more of the assets of a previously certified 8(a) program participant.
• The business concern must not be subcontracting out more than the allowable percentages. See CFR §125.6 for what are the prime contractor’s limitations on subcontracting for the specific percentages.

Please Note. Above are the general 8(a) program eligibility requirements. There may be more eligibility requirements based upon your unique business circumstances.

Please be aware that every 8(a) application is one-of-a-kind, and the document requirements for each application may vary.

Outlined below is a general listing of items that must be incorporated in your 8(a) application. Your specific application may necessitate additional items that are not indicated below. Please be advised that the SBA may request any information they consider essential to make a final determination on your 8(a) application. Failure to supply any requested information may result in a denial. It is crucial to note that merely providing the listed documents does not guarantee certification. The documents must also meet the SBA’s eligibility criteria.

• Signed 1040 personal tax returns (last three filing years) including all schedules, attachments, W-2’s, 1099’s and proof of payment for any tax owed for each 8(a) Applicant and their spouse.
• Signed business federal tax returns including all schedules and attachments for the last five filing years, or as many as you have been in business, if less than five years. Proof of payment for any tax owed may be required, if applicable.
• Balance Sheet, Income Statement, A/P and A/R aging statements no older than 30 days old for the current year to date. Please note, your financial statements must be prepared either on an income tax basis or be GAAP compliant.
• Balance Sheet, Income Statement, A/P and A/R aging statements for the last three completed fiscal years.
• A resume for each 8(a) applicant and any other key officer, employee, director or 10% or more owner.
• A detailed listing of all clients broken down by revenue earned for the last 12 months and for the last three years.
• A certificate of good standing (required for Corporations and LLC’s only) no older than 1 year old.
• Stock certificates/Stock ledger (Corp), Membership Certificates/ledger (LLC).
• Articles of Incorporation/Organization/Partnership filing/DBA Filing.
• Foreign Organization Filings and associated Certificates of Good Standing (If applicable).
• Articles of Conversion/Buy-Sell Agreements, Voting Agreements (if applicable).
• Bylaws, Operating Agreement or Partnership Agreement that meet the SBA 8(a) program control requirements.
• Stockholder/Board or Member Meeting minutes (Most Recent).
• Proof of US citizenship (if required).
• Business bank signature cards.
• Copies of all business and special licenses.
• Copies of any business loan agreements.
• A copy of the current lease agreement for business.
• A current personal financial statement and supporting statements for the following: (Checking/Savings, IRAs with terms and conditions including a signed and dated certification attesting to the fact the accounts have a penalty for withdrawal, Life Insurance (Cash Surrender only), Stocks/Bonds, Mortgage, Deeds, Fair Market Value for Real Estate, Any Other Assets (Boats, RV’s, Motorcycle, Other Business Ownership, etc.), Automobile Title/Registration and associated loans, Credit Cards, Home equity or any other Loan Agreements (Student, etc.).

We have created data collection worksheets, templates, and samples to aid in gathering and generating the majority of the requested information. For instance, if you do not possess bylaws or an operating agreement, and meeting minutes, we will aid in producing these documents for your assessment.

The process of preparing an 8(a) application typically takes around 2-4 weeks, although this duration may vary depending on the complexity of your application. It is advisable to exercise caution if any consultant guarantees to complete your 8(a) application in just a few days, as this can result in your application being denied or returned. A typical 8(a) application comprises a variety of documents that can range from several hundred to over a thousand pages when submitted to the SBA. It takes time to adequately compile, complete, and most importantly, review all of the documentation.

According to the SBA, “Cases are reviewed and processed in the order in which they are received. We have experienced a more than 65% increase in 8(a) application submissions and we are also currently experiencing a staffing shortage.” This highlights the significance of ensuring that your 8(a) application is meticulously prepared and complete before submission.

After submitting your 8(a) Application to the SBA, you should expect to receive an email or notification through certify.sba.gov within one day to two business weeks, which will identify your assigned SBA reviewer. Your reviewer may request additional information or clarification, which we will provide as part of our Turnkey 8(a) Application Completion Service.

Once the SBA confirms that your 8(a) application is complete, it may take approximately three to five months to receive a decision. It is important to note that the burden of proof to verify compliance with 8(a) eligibility criteria rests with the applicant, and incomplete applications will not be processed by the SBA, as stated by the SBA.

Our 8(a) Application Completion Service boasts a success rate of over 99%. This achievement is possible because we conduct a rigorous qualifying interview with each client to ensure they meet all the 8(a) program regulations before engaging in our service.

If, after our assessment, we determine that you do not qualify for the 8(a) program, please do not be discouraged. Approximately 50% of individuals we speak with do not meet the rigorous 8(a) program requirements. Nonetheless, we will provide you with guidance on what steps you need to take to apply for the program in the future.

1. Our team is dedicated to the 8(a) Certification process!

• We stay up to date on daily changes to the SBA 8(a) Program.
• Our understanding of the current SBA 8(a) Regulations is comprehensive.
• We review the latest SBA OHA (Office of Hearings and Appeals) cases on 8(a) Certification.

2. We have a proven track record of success!

• Our success rate is over 99% for clients we qualify.
• We have helped thousands of small businesses attain and maintain their 8(a) Program Certification.
• We can provide references to support our success rate.

3. We have over 20 years of experience in the 8(a) Program!

• All of our services are performed by Cloveer employees – we don’t use outside contractors like some competitors.
• We offer full life-cycle 8(a) Program services, not just Certification Completion Services.
• Our principals, Rick and Monica Otero, have personal experience in a successful 8(a) Certified business.

4. We value your time!

• We pre-qualify potential clients for our full 8(a) Application Service to avoid wasting their time and ours.
• We provide clear and honest answers to your questions.
• Even if you don’t qualify for the 8(a) Program, we will identify any possible workarounds for your specific issues.

5. We prioritize customer service!

• We treat every client with respect, recognizing them as a small business.
• Our service agreements guarantee confidentiality of your information.
• We protect all information provided to us on our secure server and never share it with anyone.

In summary, we are confident in our ability to provide the best 8(a) Program consulting services available. While others may try to imitate us, our experience and track record set us apart.

You can view our list of testimonials and call any of our clients.

The cost of our Turnkey 8(a) Application Completion Service is $7,500.00. Upon engagement we will charge you $250.00 for the prequalification interview. If we determine you qualify the final balance will be billed in two installments.

The first installment is due at the start of your 8(a) Application engagement, after the prequalification and the final balance is payable either 30 days after engagement or upon completion, whichever comes first.

We offer multiple payment options, including Visa, MasterCard, American Express, Discover, checks, PayPal, and wire transfer.

If you’re interested in proceeding with our service, please request a Service Agreement.

• You are welcome to view our blog or 8(a) faqs for more frequently asked questions on the SBA 8(a) Program.
• You can also view the latest SBA 8(a) Regulations (CFR: Title 13:Part 124) and read up on the extensive rules and regulations that govern the 8(a) Program.