Myth: It’s easy to get SBA 8(a) Certified.
As of September 1, 2021 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 $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.
What is the definition of Adjusted Gross Income?
Adjusted gross income (AGI) is a tax term for an amount used in the calculation of an individual’s income tax liability. AGI is calculated by taking the applicants gross income and subtracting their maximum allowable adjustments. AGI is located on line Line 7 for 2018 personal taxes, Line 8B for 2019 Taxes and Line 11 for 2020 personal taxes.
The SBA HUBZone Office has recently put out some new rules regarding shared office spaces. While these new 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.
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.
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.
The certification process for Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged WOSBs (EDWOSBs) has recently changed.
As of October 15, 2020, the previous self-certification option on the old certify.sba.gov platform is no longer available. The new online formal certification process for WOSB and EDWOSB is now live through a new portal at beta.certify.sba.gov.
After a long time of anticipation, the SBA announced new 8(a) Eligibility Economic Disadvantage rules that go into effect on July 15, 2020. This exciting news will allow many more small business owners gain access to the SBA 8(a) Program. See the except from Federal Register. Below are the new rules that will go into effect.
Adjusted Net Worth:
Currently the 8(a) Applicant must have an Adjusted Net Worth of less than $250,000, to become 8(a) certified and be deemed Economically Disadvantaged by the SBA. The new rule increases the 8(a) Applicant’s Adjusted Net Worth to $750,000 to become and remain 8(a) Certified.
Adjusted net worth = Assets – liabilities – (Equity in primary residence + value of ownership interest in business concern + IRA/401(k) or Other Retirement Accounts)
Dear Small Business Owners,
After consultation with SBA’s Office of General Counsel, it was determined that the President’s actions constitute a nationwide federal disaster declaration for purposes of the 8(a) BD program’s voluntary suspension procedures.
If you would like a Hubzone Program eligibility analysis, please take our online hubzone eligibility questionnaire.
You are also welcome to review the basic eligibility requirements below. Generally, to be approved into the Hubzone Program you must meet these basic eligibility requirements:
Eligibility Criteria 1:
Your business concern’s principal office must be located in a qualified SBA designated Hubzone. Search the SBA’s Mapping system and verify if your principal office is located in a qualified SBA designated Hubzone.
