For small business organizations, federal loans can be quite useful to develop the business. However, such loans are offered by the SBA only for business organizations which are owned and managed by minority, women or service disable veterans. The SBA 8A program is one of the largely available business agendas present in the market which focuses on developing the small organizations and promotes individual entrepreneurs. To avail such benefits of SBA 8A, it is mandatory for you to successfully complete the application process. The 8A certification process as suggested by the SBA generally comprises of 3 basic parts including:
If you are an applicant, not less than 51% of the ownership of your business should be managed and controlled by a minority, women or service disable veterans. In addition to it, the owner of the majority of shares should have active involvement in the daily business operations. In this context, SBA utilizes a highly adept system that determines and finds out the individual majority shares owner of your business and makes sure that they adhere to the basic rules and regulations.
The second part is a very difficult step as it demands certain legal obligations to prove that you are economically and socially disadvantaged. According to the norms and standard set by the SBA, your business can qualify as economically and socially disadvantaged. If you are the majority share holder, make sure your net income should be more than USD 250000. This amount should exclude assets such as company ownership and personal home.
In the third step, the SBA will systematically check your business to determine whether it qualifies for small business requirements or not. If your business is on the list of banned businesses, then it will not pass the SBA 8a application process. The SBA accepts the standard for small business set by North American Industry Classification System which states that a business is small scaled if:
• It has around 500 employees form mining, manufacturing and other industrial procedures
• It has USD 7 million as an average annual receipt for a number of non-manufacturing businesses
• It has 100 employees for wholesale trade businesses
8A certification application process can turn out to be a complicated tricky task if not dealt with proficiency. Getting your business organization 8A certified will not only add value to your company but will also help in bidding for federal contracts. Thus, 8A certification widens your prospects and offers you will a number of avenues to expand the growth of your business.
If you are an applicant, not less than 51% of the ownership of your business should be managed and controlled by a minority, women or service disable veterans. In addition to it, the owner of the majority of shares should have active involvement in the daily business operations. In this context, SBA utilizes a highly adept system that determines and finds out the individual majority shares owner of your business and makes sure that they adhere to the basic rules and regulations.
The second part is a very difficult step as it demands certain legal obligations to prove that you are economically and socially disadvantaged. According to the norms and standard set by the SBA, your business can qualify as economically and socially disadvantaged. If you are the majority share holder, make sure your net income should be more than USD 250000. This amount should exclude assets such as company ownership and personal home.
In the third step, the SBA will systematically check your business to determine whether it qualifies for small business requirements or not. If your business is on the list of banned businesses, then it will not pass the SBA 8a application process. The SBA accepts the standard for small business set by North American Industry Classification System which states that a business is small scaled if:
• It has around 500 employees form mining, manufacturing and other industrial procedures
• It has USD 7 million as an average annual receipt for a number of non-manufacturing businesses
• It has 100 employees for wholesale trade businesses
8A certification application process can turn out to be a complicated tricky task if not dealt with proficiency. Getting your business organization 8A certified will not only add value to your company but will also help in bidding for federal contracts. Thus, 8A certification widens your prospects and offers you will a number of avenues to expand the growth of your business.
0 comments:
Post a Comment