Are You Eligable for 8a certification?

Posted by Biz Central USA Marketing Team on April 29, 2010 under Small Biz and Entrepreneurship, Small Biz Certifications, Small Biz News | Be the First to Comment

Acquiring an 8(a) Certification can be extremely beneficial to your business. Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to Small Disadvantaged Businesses Certified businesses.

In order to be eligible for an 8(a) certification:

• You must be a small business based on size standards for small businesses in your industry
• You must be U.S. citizen
• You must be the majority owner of the business owning at least 51%
• You must work full-time in your business
• You must run the day-to-day operations of the business
• Control of your board must be exercised only by disadvantaged persons.  You must be a socially disadvantaged individual (Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities)
• Socially Disadvantaged Groups (African Americans, Native Americans, Hispanic Americans, Asian Pacific Americans, and Subcontinent Asian Americans) Other individuals can be admitted to the program if they show through evidence that they are disadvantaged because of race, ethnicity, gender, physical handicap, or residence in an environment isolated from the mainstream of American society
• Ultimate control of your company must be the responsibility of the disadvantaged individual
• You must be an economically disadvantaged individual (For the 8(a) program this means all applicant individuals must have a net worth of $250,000 or less, excluding the value of the business and personal residence)
• You must be in business for at least two years or apply for a waiver of the two-year requirement
• You must not have any significant unresolved federal or state tax financial issues
• You must be of good moral character
• You must not operate a business that is not eligible for certification (Broker or Non-Profit)