Firms decide against moving forward with applying for the SBA 8a Certification for various reasons. Among them are lack of knowledge, fear of government red tape, and procrastination. I will go over the most frequent misconceptions regarding the SBA's 8(a) Business Development Program, helping clarify how they can be overcome.

Your company cannot get 8(a) certified if it has not been in business for at least 2 years.

• There is a waiver process for businesses looking to obtain their 8a Certification sooner than 2 years. The typical requirements are that:

            -The owner of the firm has significant industry experience. 

            -The business has one tax return with revenue and an income.

            -The owner of the firm works full-time for the applicant's concern.

            -The firm has revenue from its inception greater than $150,000.

            -The business and owner meet all other 8(a) requirements.

Note: A 2-year waiver is not needed if the company is only changing the organizational structure of the business. For example: Changing a sole proprietorship to a corporation. 

Your company cannot get certified if your past application has been rejected by the SBA.

• The SBA rejects 70% of all applications completed by non-professionals largely in part due to lack of completeness. A firm having its’ 8(a) application rejected on the first attempt is very common.  

The 8(a) Certification really can’t do that much for my business.

• In 2023, 8(a) certified companies grossed over $32 Billion dollars worth of contracts which represents 5+ million dollars in annual revenue per 8(a) firm.

My company should be a well-established mid-tier business before I apply for the 8(a) Certification.

• The SBA gives 8(a) companies the ability to engage in Joint Venture Partnerships and Mentor Protégé Arrangements with larger governmental contractors. These relationships can greatly increase a firm’s growth rate by providing the 8(a) firm with expertise, bonding, insurance, financial capabilities, as well as other assistance.  

I must be 100% member of a minority group to prove to the SBA I am socially disadvantaged.

• An individual that can trace 25% of their blood lineage to a presumed disadvantaged minority group is eligible for the 8(a) Certification given adequate supporting documentation showing the person holds themselves out to be part of that minority group. 

Are you ready to grow your business? Myths about the SBA 8(a) Certification shouldn't prevent you from obtaining it. There are ways to move past rejection, regardless of how new your firm is. Take advantage of the opportunity to boost your revenue, gain industry expertise through joint ventures, and leverage mentor-protege. This certification opens access to position your company for success in the federal contracting industry. If you need assistance with navigating the application process, I strongly recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.