How to Get SBA 8(a) Certification?
A small business that is owned by socially and economically disadvantaged citizen comes under SBA’s 8(a) certification. SBA is popularly known as Small Business Administration, which is a United States government body that supports the growth and development of small businesses. The 8(a)-certification programme brings small business entrepreneurs under a single shelter where they can get government contract and economic support.
What’s The Purpose of the 8(A) Certification?
The main goal of the 8a certification was to involve the greater section of the society. If an entrepreneur or small business owner is deprived of basic facilities due to gender, physical disability, race, and ethnic origin, that person can get hold of the certification by providing necessary evidence of being socially disadvantaged. SBA performs a significant role here as it is responsible for identifying different groups that are eligible for the certification which include Native American, Black Americans, Asian Americans, and Hispanic Americans. Through the certification, the small businesses can participate in sole-source government contract and can also form joint ventures with established businesses. The federal government has another goal of awarding at least 5% of federal contracting expenses to such small businesses.
Eligibility Criteria for Getting 8(A) Certification:
· 51% of the business must be owned by U.S. citizen who are socially or economically disadvantaged.
· It should be a small business.
· The total asset of the owner must not exceed $6 million.
· The owners’ personal net worth should not exceed $750,000
· At least 51% of the business must be operated by the owner who must be a U.S. citizen and hold a disadvantaged status both socially and economically.
· The owner must be of good character.
· The AGI (Adjusted Gross Income) of the owner must not exceed $350,000
· If any small business owner or entrepreneur has participated in the programme previously, they will not be allowed to participate again.
· Potential evidence which shows that the owner is and will be able to successfully conduct the business and the contract, is required.
Types Of Assistance An 8(A) Certification Provides:
· Financial Assistance.
· Mentoring.
· Training related to the growth and factors.
· Opportunity to compete in different government contracts.
· Opportunity for joint ventures with previously set up businesses.
Procedure to Apply For the Certification:
· Before the owners begin with the certification process, they must register with the SAM (System for Award Management). This step is a must in order to log in to the website certify.sba.gov
· Once the business is officially registered, now the owner will get the TIN or EIN number for paying taxes and will also hold DUNS number.
· Before apply for the registration process the owner should check if s/he has the necessary documents or not because without documents the process will remain pending.
· The owner should carry documents like bank statements, financial statements, personal history statements, signed federal personal and business tax return, and any other documents that prove the owner is eligible for the 8a certification.
· Once the business verification is done, check your business is eligible or not based on the given checklist. If you find yourself eligible, apply electronically through the mention website.
How to Run the Process with Fewer Struggles?
· If you want to run the certification process with fewer struggle, it is advisable that you hire a professional consulting firm who will do the work for you.
· As they are expert in the process, they will guide you through the system with ease and will make it sure that your application gets approved for sure.
· Such firms or agents are aware of the procedure and know all about the required documents.
· They take care of the timely submission of your documents and ensures all documents are well-formatted.
· They also communicate with the SBA officers if needed.
· If you hire an agent, there is no chance of losing a year due to rejection.
How Long Does The Process Take?
Usually, 8a certification process takes 3–4 months. In case of any errors or inconsistencies, it will take longer to process the certification.
How to Reapply if My Application is Denied?
· If your application gets rejected, you can submit a request of reconsideration keeping in mind the errors.
· While requesting reconsideration make sure you add previously non-submitted documents and correct all errors.
· Reconsidering request should be made within 45 days.
· If your application is completely declined, you can reapply after 12 months of your previous application attempt.
Validity of the Certification:
After your certification process completes, your certification will be valid for next nine years. However, you must confirm your disadvantaged status every year.
As 8a certification is a process that required thorough and careful handling, it is always recommended that you hire an agent from a reputed firm to maintain the professionalism and complete the process smoothly.