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Can 8a companies invest in other and/or non-8a companies?
8a companies can acquire non-8a companies but can we invest (minority/majority financial stake) in other companies?
By V LaMarche
November 14, 2020
1208
1
Jesse Dunbar, Editor Said : Yes, an 8a firm can have wholly-owned subsidiaries and they can also own interest (majority or minority) in other firms. The SBA will review those relationships to be sure the other firms don’t have the potential to control the 8a firm. So long as there is no potential for negative control, owning other firms is allowed.
Yes, an 8a firm can have wholly-owned subsidiaries and they can also own interest (majority or minority) in other firms. The SBA will review those relationships to be sure the other firms don’t have the potential to control the 8a firm. So long as there is no potential for negative control, owning other firms is allowed.
