SBA 8a Qualifications & 8a Certification Requirements 13 CFR 124
Understanding the 8a requirements and SBA 8a qualifications may seem simple initially. However, in terms of legal analysis and the reasons for application denials, the difficulty in understanding how to get 8a certified will soon become apparent.
At Watson & Associates, our purpose is to help you understand and follow the requirements for 8a certification in addition to increasing your chances of approval. When it comes to meeting SBA 8a certification qualifications and getting your 8a status, our consultants and lawyers have a sound track record in helping small businesses to:
- Overcome SBA affiliation with current business clients;
- Make sure that social and economic narratives (if needed) are convincing and meet legal requirements;
- Address potential control issues and can get your SBA 8a application denied;
- Appeal adverse decisions to SBA office of Hearings and Appeals.
Do You Meet the SBA 8a Requirements and 13 CFR 124 SBA 8a Qualifications?
To get 8a certified, or increase your chances of getting your SBA 8a status, you must meet the following 8a requirements for SBA certification qualifications under 13 CFR Part 124 and SBA 8a qualifications:
- Must be a small business concern based on applicable SBA size standards for small businesses in your industry.
- All individuals upon whom eligibility is based must be U.S. citizens.
- Must be the unconditional majority owner of the business.
- Outside business interests are strictly limited.
- Must work full-time in your business.
- Must be in immediate charge of your business.
- Board control, in the case of a small business corporation, can be exercised only by disadvantaged persons.
- Must be a socially disadvantaged individual. Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities.
- The social disadvantage must stem from circumstances beyond their control. Under the Small Business Act, certain presumed groups include African Americans, Native Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans. Other individuals can be admitted to the program if they can show evidence that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society
- Must have ultimate control of your company and must not reside with anyone other than those upon whom 8a certification eligibility is based.
- Must be an economically disadvantaged individual. For the 8(a) program this means all applicant individuals must have a net worth of $250,000 or less, excluding the value of the business and personal residence.
- Must be in business for at least two years or apply for a waiver of the two-year requirement.
- Must not have any significant unresolved federal or state tax financial issues.
- Must be of good moral character.
- Must not operate a business that is not eligible for certification.
To find out more about SBA 8a requirements and 13 CFR Part 124 8a qualifications and narrative statement of economic disadvantage (SBA has reduced this requirement), call our SBA small business consultants at 1-866-601-5518.
Learn more about getting 8(a) Sole Source Contracts With the Government.
Getting 8a Certified – Social Disadvantage SBA 8 a Certification Requirements Under 13 CFR 124
The law governing SBA 8a certification requirements and SBA 8a qualifications mandate that an applicant business concern meets the 8a certification eligibility requirements for admission to the 8a Program.
Businesses must qualify as a small business that “is unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of and residing in the United States, and which demonstrates potential for success.” 13 CFR Part 124.101.
Tip: The SBA’s decision for requirements for 8a certification for “potential for success” cannot be appealed to SBA OHA.
To meet SBA 8a certification requirements, socially disadvantaged individuals are defined as those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities.” 13 CFR 124.103(a).
This requirement creates a rebuttable presumption that members of certain groups are socially disadvantaged. 13 CFR 124.103(b). To get 8a certified, individuals who are not members of the enumerated groups must establish social disadvantage by a preponderance of the evidence. See 13 CFR Part 124.103(c)(1).
Narrative Statement of Economic Disadvantage & SBA 8a Certification Requirements for Education
When reviewing your application for eligible education claims, the SBA takes into account “such factors as denial of equal access to institutions of higher education, exclusion from social and professional association with students or teachers, denial of educational honors rightfully earned, and social patterns or pressures which discouraged the individual from pursuing a professional or business education.” 13 CFR 124.103(c)(2)(iii)(A).
- Under the rules for requirements for 8a certification, you cannot make conclusory statements in your narrative statement of economic disadvantage when seeking to get 8a certified. You must back them up with factual evidence;
- SBA 8a certification requirements mandate that you show an end result and not just that a situation was present.
Our 8a certification consultants ensure that you carefully go through the entire SBA 8a certification application process in order to avoid any false representation in your narrative statement of economic disadvantage.
We help 8a certified companies with contract joint venture agreements and teaming relationships.
Call Our SBA Consultants for Help With Meeting Your 8a Certification Eligibility Requirements
For additional assistance with your SBA 8a requirements under 13 CFR 124, a narrative statement of economic disadvantage, and small disadvantaged business SBA 8a certification eligibility qualifications call our consultants at 1-866-601-5518 for a FREE INITIAL CONSULTATION.