Do you think yourself to be eligible for the program? There are many eligibility requirements of 8a Business Development Program. You need to meet all those to get your business 8a certified. By getting 8a certification, you will have great opportunities for federal contracting. However, among the many requirements, one of the most important 8a certification requirements is to be socially and economically disadvantaged.
Here in this article, we have discussed mainly about what your social and economic status needs to be in order to get your business 8a certified.
The entrepreneur should be a Hispanic American, Black American, Native American or an Asian American in order to be considered as a member of the socially disadvantaged group. However, if the entrepreneur does not fall into any of these categories but has experienced discrimination in the American society on the basis of race, culture, gender, or any other factor, then also he/she will be considered as a socially disadvantaged individual. But the person needs to prove this to the Small Business Administration that he/she has undergone sufferings because of discrimination in the society.
The entrepreneur also needs to prove his/her economic status. He/she should not be having more than $250K personal net worth. He should be the highest paid man in the company but his salary should be reasonable in proportion to the firm's annual gross revenue. As far as the market value of his assets are concerned, it should not exceed 4 million dollars.
The average 2 year AGI of the person applying for the 8a certification must be less than $200K. The enterprise that wishes to get 8a certified must be financially stable as well. It should have a 3 months working capital in its account or should have enough credit and loan resources. The company should not be struggling to run its business. If it's so, the Small Business Administration will reject the 8a application of the firm. The company should be viable, stable and should have a potential to succeed in the industry. It should have enough resources and capital to get huge federal contracts. The Small Business Administration even expects the firm to expand its resources if there is an increase in federal contracting workloads.
The Small Business Administration is very strict when it comes to approving the certification program for the small business. So, if you want to be eligible for the 8a program, you should keep in mind that you need to have all the above-mentioned things as far as your social and economic status in the American society is concerned.
Here in this article, we have discussed mainly about what your social and economic status needs to be in order to get your business 8a certified.
The entrepreneur should be a Hispanic American, Black American, Native American or an Asian American in order to be considered as a member of the socially disadvantaged group. However, if the entrepreneur does not fall into any of these categories but has experienced discrimination in the American society on the basis of race, culture, gender, or any other factor, then also he/she will be considered as a socially disadvantaged individual. But the person needs to prove this to the Small Business Administration that he/she has undergone sufferings because of discrimination in the society.
The entrepreneur also needs to prove his/her economic status. He/she should not be having more than $250K personal net worth. He should be the highest paid man in the company but his salary should be reasonable in proportion to the firm's annual gross revenue. As far as the market value of his assets are concerned, it should not exceed 4 million dollars.
The average 2 year AGI of the person applying for the 8a certification must be less than $200K. The enterprise that wishes to get 8a certified must be financially stable as well. It should have a 3 months working capital in its account or should have enough credit and loan resources. The company should not be struggling to run its business. If it's so, the Small Business Administration will reject the 8a application of the firm. The company should be viable, stable and should have a potential to succeed in the industry. It should have enough resources and capital to get huge federal contracts. The Small Business Administration even expects the firm to expand its resources if there is an increase in federal contracting workloads.
The Small Business Administration is very strict when it comes to approving the certification program for the small business. So, if you want to be eligible for the 8a program, you should keep in mind that you need to have all the above-mentioned things as far as your social and economic status in the American society is concerned.
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