Do you want your small business to get 8a certified? You first need to make sure whether you are eligible for the SBA 8 a certification requirements. If you are unable to meet any one of them, you will be rejected by the United States Small Business Administration. The SBA is very strict with reviewing the application. Any mistake on your part will delay your request and cause harassment to you or even jeopardize your chances of getting 8a certified by the SBA.
Here in this blog, we have discussed the four major mistakes, which applicants often make while applying for the 8a program. Make sure not to make these mistakes when you apply for the certification program.
Never appoint your better half as the CEO of your company
Many applicants make the mistake of appointing their spouse as the CEO of the firm. This is one of the major mistakes they do. You should never do this unless your better half has a strong background in business management or has held a top management position in other companies in the past. Make sure your spouse has technical credentials as well if you plan to appoint him/her in the position of CEO. The person you appoint as the Chief Executing Officer of your small firm should have the appropriate skills, expertise, licenses and credentials required to succeed in the industry.
Never obtain contracts from your X-employer
You should make it a point not to acquire contracts from your past employers. If you do acquire contracts from them, it will see as if your form is just a front for them. All you need to do is develop a wide base of clients and have a balanced project portfolio before getting involved in the SBA 8a application procedure.
Never appoint a number of Board of Directors
One of the major mistakes, which small companies often do is, just after few months of their commencement they appoint a number of board of directors. Never do this because you might dilute your firm control or come up with an affiliation or size problem. Carefully vet all the directors and officers before applying for the 8 a certification because these people will need to submit some of their personal documents as part of the firm’s 8a application.
Never show a loss on company taxes
Applicants often think that they might get approval from the SBA if they show the agency that they have incurred losses while running the company. Never do this. Instead show positive equity and positive revenue in your business to prove the SBA that your firm is in a stable and healthy condition.
Always make sure that you do not make these above-mentioned SBA 8a application mistakes if you want your company to get 8a certified at one go.
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| 8 a certification |
Never appoint your better half as the CEO of your company
Many applicants make the mistake of appointing their spouse as the CEO of the firm. This is one of the major mistakes they do. You should never do this unless your better half has a strong background in business management or has held a top management position in other companies in the past. Make sure your spouse has technical credentials as well if you plan to appoint him/her in the position of CEO. The person you appoint as the Chief Executing Officer of your small firm should have the appropriate skills, expertise, licenses and credentials required to succeed in the industry.
Never obtain contracts from your X-employer
You should make it a point not to acquire contracts from your past employers. If you do acquire contracts from them, it will see as if your form is just a front for them. All you need to do is develop a wide base of clients and have a balanced project portfolio before getting involved in the SBA 8a application procedure.
Never appoint a number of Board of Directors
One of the major mistakes, which small companies often do is, just after few months of their commencement they appoint a number of board of directors. Never do this because you might dilute your firm control or come up with an affiliation or size problem. Carefully vet all the directors and officers before applying for the 8 a certification because these people will need to submit some of their personal documents as part of the firm’s 8a application.
Never show a loss on company taxes
Applicants often think that they might get approval from the SBA if they show the agency that they have incurred losses while running the company. Never do this. Instead show positive equity and positive revenue in your business to prove the SBA that your firm is in a stable and healthy condition.
Always make sure that you do not make these above-mentioned SBA 8a application mistakes if you want your company to get 8a certified at one go.
