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Aspiring 8a

8(a) Application Watchlist

The average federal sales that an 8(a) Certification holder received last year was well over $7MM. Therefore, the tremendous advantage the SBA provides to an 8(a) certified firm only comes after a rigorous application process.

The following is a list of issues that will likely result in your 8(a) Application experiencing a denial:

1. If you claimed a partnership with another 8(a) firm or recent 8(a) graduate on your website.
2. If you owe Federal Debt and have not made payment or set-up a current payment plan.
3. If you have ever defaulted on a government loan such as a mortgage (FHA) or Student Loan - even if included in bankruptcy. The duration of time is within the last three years for an FHA Loan.
4. If you show you were employed at a firm other than the applicant concern on your LinkedIn profile.
5. If you are not a US Citizen.
6. If you have more than $250k in savings/brokerage accounts.
7. If you do not devote full-time to the business concern.
8. If your Adjusted Gross Income (AGI) for the last three years is over $250k. 
9. If you are on parole or probation. 
10. If you do not have a positive net income, equity and working capital.
11. If you are not defined as a Small Business.
12. If your business is a non-profit.
13. If you are a broker, meaning you never take possession of an item for resale purposes.  
14. If your revenue is derived by earning more than 70% from one single commercial client.
15. Failure to submit requested documentation in their entirety. 
16. Failure to demonstrate proof of personal social disadvantage (if non-presumed).
17. Showing control for the business by non-disadvantaged individuals.

If the 8(a) application is denied, the firm is required to sit out a period of 1 year prior to reapplying. The SBA will also retain a copy of the denial letter and the issue that caused the denial will be revisited with the subsequent application.

Therefore, it is very important that your firm pay close attention to every last detail when applying for an 8(a) Certification.

 

If you have any questions about if your small business qualifies for an 8(a) Certification, or would like more in-depth analysis on your future business development opportunities through this or any other federal certification, I recommend contacting an industry expert such as ez8a or Advance 8a. Both consulting firms do not charge for an initial consultation.

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