We have been discussing all about the 8 A Certification and its efficacy in helping small businesses flourish, for as long as we can remember. However, little is being said about how a Business owner can self-evaluate his/her company’s market standing in order to decide whether they need to apply for SBA 8a Application or not. This post will shed light on this less-discussed issue.
Simply put, here are 4 steps of eligibility to evaluate whether your business requires 8a certification -
1. If you are at social disadvantage – Are you an American Hispanic, an Asian American? Or do you belong to one of the Native American tribes or even a member of the Black American community? In either case, the SBA will consider you as a member of the socially disadvantageous people residing in the United States of America and give you permission to submit 8a certified application. Moreover if you have ever been at the receiving end of any sort of discrimination against you concerning your ethnicity and financial as well as social backwardness, the SBA will grant your case a special status and allow you to pursue the 8a certification program for your enterprise. Further you might be asked to provide a “proof of discrimination” against you / your business, which you may have faced in the mainstream US society , in fields other than business like career, society and education, just to name a few.
2. If your net worth is below $250K – The SBA has designed this 8 A Certification program for those businesses that are economically weak, which means the owners of such businesses must not hold personal assets worth USD 250K and above. If your personal net-worth is below this fixed sum, then obviously you can prepare to submit your SBA 8a Application.
3. If your business indeed fall under the small business clan- “How do I know whether I’m a small business or not?” Well, let me tell you this. A company is determined as small business depending on the number of employees it has as well as the gross income it generates in a single financial term. The NAICS code helps to determine your company’s true status. So get the NAICS code for your business from the SBA website to find out your business size –small, medium or big.
4. If you have a full 51 percent or more business ownership – the SBA has made it clear in their rule book that before submitting their SBA 8a Application, the 8 A Certification aspirant business must provide documents to the SBA which would clearly act as a proof indicating that the owner has 51% or more single ownership of the firm concerned.
These are just the 4 major steps to finding out whether your business is eligible to apply for the 8 A Certification. If you have any comments on any of the information shared, or if you wish to add a keynote on the same, feel free to comment below. Stay connected to Ez8a 8 A Certification blog for more.