How to Prove that the Business is Eligible for 8a Certification

The 8a certification program by the SBA is to provide support to the disadvantaged businesses and firms. But they need to meet the five criteria’s for the eligibility of the certification. The eligibility criteria are complicated and require a deep study to find if your company’s eligible for the certification.

In order to ascertain the right information, the SBA conducts and examines the current operating agreement or bylaws, loan agreements, bank signature cards, and customers and subcontractors, the correct business and technical backgrounds, and the method of how the business equity is controlled and held.
A disadvantage is a broad term and in case of 8a certification program, it involves much vital and significant information. Among the 5 eligibility criteria, the 3 are directly related with the owner whereas the other two are related with the business or firm.
For being eligible for 8a certification, any one or more than one of the condition is adequate to apply for the certification. For any business or firm which is disadvantaged should obtain the certification to enter the mainstream market and perform to its potential.

For certain conditions, a waiver to the 8a certification eligibility criterion is also provided. This enables businesses with potential not to wait until they meet the requisite criteria. This applies to the last criterion which is to demonstrate the potential of the firm. Here, to prove the potential it is required for the firm to be in business for at least two years, however, a waiver can be granted for this rule.
The effect of the waiver is seen on the other criterion as well which states that not more than 70% of the revenue of the business should not be single sourced. The eligibility for 8a certification is complicated and thorough research is required to check the eligibility status of the firm or business.