Do you have all your eggs in one basket? Economic Dependence is a significant obstacle to the eligibility of many applicants desiring to gain 8(a) Certification for their business. In fact, it is currently the #1 issue for which we have to turn the greatest number of potential 8(a) applicants away, until the issue is resolved.
Hiring a reputable consultant to assist in the preparation of your 8(a), Hubzone or VetBiz Application can be very important. Here’s a recent fact: Most self prepared 8(a) Applications are rejected outright or sent back multiple times for deficiencies or inconsistencies. In fact “Only 2 out every 10 self prepared 8(a) Applications are approved by the SBA“.
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.
Each newly certified SBA 8(a) Participant must develop a comprehensive 8(a) business plan (Form 1010c) setting forth its business targets, objectives, and goals.
Typically your 8(a) Business Plan must be submitted within 30 days from the date of its 8(a) program admission. Your 8(a) firm will not be eligible for 8(a) program benefits, including 8(a) contracts, until its 8(a) business plan is approved.
Failure to provide an 8(a) Business Plan in a timely manner and receive approval can result in early termination by the SBA.
Are you exploring the possibility of applying for the SBA 8(a) Program?
Don’t know where to start? The first step is to find out if you meet the SBA’s 8(a) Program eligibility requirements before you decide to take the leap into the complex 8(a) Application.
Every individual claiming disadvantage status, as well as each officer, director, partner, member, key employee or holder of 10% or more ownership interest in the firm applying for the 8(a) Program must submit a detailed personal resume.
Here are 10 important tips to make sure these individual’s resume contain all information required by the SBA.
The following is a detailed list of items needed to complete the Personal Financial Statement section of your 8(a) Application.
Please note, this list may or may not cover every personal asset or liability you may have and should serve as only a general list.
All amounts reported to the SBA must be no older than 30 days old when submitted to the SBA.
Control is not the same as ownership. For example a disadvantaged individual may own 51% of the business that is applying for 8(a) Certification but they may be found to not unconditionally control the company by the SBA.
The SBA regards control as including both the strategic policy setting exercised by boards of directors and the day-to-day management and administration of business operations of the business.
When you apply for the SBA 8(a) Program you must report to the SBA what your primary NAICS (North American Industry Classification System) code is.
Your primary NAICS code is defined as the six digit code in which your business earned its largest segment of revenue, in the most recently completed fiscal year.
