They rely solely on the certify.sba.gov eligibility questionnaire to determine if they qualify for the 8(a) Program.
If you answer the five questions “Yes” within the “Are you eligible for the 8(a) Business Development Program?” questionnaire on certify.sba.gov the results will state “Based on the responses you provided above, you appear to be eligible for the 8(a) Business Development Program”.
Do not assume that by answering these five questions you are truly eligible for the 8(a) Program.
To do so, it must be in business in its primary industry classification (NAICS code) for at least two full years (24 months) immediately prior to the date of its 8(a) application and be able to provide business tax returns for each of the two previous tax years that show sufficient operating revenues earned within the primary industry (NAICS code) in which the applicant is seeking 8(a) certification for.
The SBA will verify the following:
Have you provided complete copies of the Federal business tax returns for the last five years.
The $350,000 Threshold for Adjusted Gross Income (AGI)
Among the many 8(a) business development program eligibility requirements the applicant for 8(a) Certification must have is an average AGI over the past three taxes years of less than $350,000.
Every entity that wants to do business with the Federal Government, must be registered in SAM. A complete and active SAM registration is needed in order to get paid by the Federal Government and to apply to any of the Federal Government Contracting Programs run by SBA and VA.
As the President/CEO of Cloveer, Inc. I speak to many potential clients who are interested in becoming 8(a) Certified. I would say that 7 out of every 10 people I talk to do not and cannot qualify for the 8(a) Program due to the strict 8(a) Program requirements. Many of these individuals have tried to prepare their own application without some sort of outside assistance and learn the hard way via denial or a returned application by the SBA.
Here are a just six of most typical few reasons for a denial by the SBA we find when speaking to potential 8(a) Applicants:
Myth: It’s easy to get SBA 8(a) Certified.
As of July 2022 there are less than 7,000 active 8(a) Program participants and have never been more than 10,000 active 8(a) Program participants at any one time in the SBA 8(a) Program’s history.
Fact: The SBA returns over 90% of all 8(a) applications submitted and rejects 70% of all 8(a) applications submitted for review.
The SBA HUBZone Office put out some new rules regarding shared office spaces. While these rules may seem stricter, it is actually good that they have put the policy in writing so that it is clear on what will qualify for your principal office and what will not. For companies looking to lease a new space or apply to the HUBZone program, please follow the guidelines below and share this with your landlord so that your lease can include all required information. This new policy should be posted to the SBA’s website soon.
By now you probably know that at least 35% of your total employees must reside in a HUBZone. By total employees, we mean every single employee that works more than 40 hours a month, no matter where they work. This means employees that work at your principal office, other office locations, jobsites, and remotely from home, all count towards that 35% that you must meet.
