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) or EDWOSB 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.
Please note. We have a Personal Financial Statement Worksheet for purchase that will help you collect, track and ensure that your Adjusted Net Worth is less than the SBAs regulatory limit.
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.
124.104 Who is economically disadvantaged?
(2) When married, an individual claiming economic disadvantage must submit separate financial information for his or her spouse, unless the individual and the spouse are legally separated. SBA will consider a spouse’s financial situation in determining an individual’s access to credit and capital where the spouse has a role in the business (e.g., an officer, employee or director) or has lent money to, provided credit support to, or guaranteed a loan of the business. SBA does not take into consideration community property laws when determining economic disadvantage.
TIP 1: Keep an eye on your Adjusted Net Worth. To remain economically disadvantaged while you are a participant in the SBA 8(a) Program the 8(a) applicant(s) Adjusted Net Worth must be less than $850,000 when you submit your 8(a) Annual review.
