The Small Business Administration (SBA) 8a certification requirements for Section 8a certification are very strict. The SBA created the 8a certification program in the 1960s. The 8a certification program allows small disadvantaged businesses an opportunity to obtain business within the federal procurement market. The SBA runs the 8a program which is also known as the SBA 8a.
The SBA 8a certification requirements exists to provide a level playing field to individuals who have encountered discrimination and belong to certain groups that are presumed to be socially and economically disadvantaged. The presumed socially and economically disadvantaged groups include Hispanic Americans, Asian- Pacific Americans, African American, or Native Americans. The Native American groups include those members of Indian tribes as well as Native Alaskan and Hawaiians. Other eligible groups include those who have experienced discrimination. They include those with disabilities, certain veteran status, gender, and other factors. Women and disabled people have benefited from a recent review of past regulations. An individual who is not a member of one of the above-named groups may apply for 8(a) certification. However, the applicant must establish social disadvantage on the basis of clear and convincing evidence.
Women currently only constitute 2.3 percent of federal contract awards. Under the Obama administration the federal government has announced a goal of spending 5% of government contracts with women-owned businesses.
In addition to the aforementioned factors, there are other requirements for 8a certification. They include the following.
8a Certification Requirements
(1) Applicants must be American citizens.
(2) Applicants must own a majority of 51 or more percent of the company and run the day-to-day operations of the company.
(3) The applicants must focus full-time on the business. Status as a full time student is not allowed.
(4) Board members must also be from qualified disadvantaged groups.
(5) The business must have filed two consecutive years of income tax returns. If the business has fewer than two years of income tax filings, it must apply for a waiver. Though the odds are not favorable, businesses are encouraged to apply and can self-certify.
(6) All state and federal income tax obligations must be paid.
(7) The owner must have a net worth under $250,000 (excluding personal home).
(8) There is also an income limit of $200,000 average for the two years.
(9) The applicant’s assets must be under $4 million not including liabilities.
Have you met all of the 8a Certification Requirements
If all of the above 8a certification requirements are satisfied, applicants are eligible to win awards up to $4 million for goods and services and $6.5 million for manufacturing. Companies are allowed to participate in a developmental stage for 4 years and a transitional stage for 5 years. The goal is to get companies to “graduate” after 9 years so they can thrive without the preferences of 8a certification.
Contact Us Today
Contact an 8a certification attorney at Kleiner & Cazeau regarding any 8a certification requirements issues. Our attorneys can be reached by phone at (305) 517-1392 ext: 102 or by e-mail using our contact form. We are ready to help you obtain your 8a certification. Our attorneys can thoroughly examine your particular situation and make sure that you meet all of the 8a certification requirements.
