Generally, to be approved into the 8 a Business Development program and become certified the business must meet these eligibility requirements:. Skip to main menu Skip to main content. SBA Near You. Small Business Events. You are here SBA. Sign Up For Our Newsletter. Generally, to be approved into the 8 a Business Development program and become certified the business must meet these eligibility requirements: The business must be majority-owned 51 percent or more by an individual s. But even this calculation excludes funds in traditional retirement accounts.
Income from an S Corporation or LLC will be excluded when the funds were reinvested in the company or used to pay company taxes. Again, socially- and economically-disadvantaged individuals have to unconditionally own and control the company. Additionally, the individual must manage the company on a full-time basis while holding its highest officer position.
The company must also demonstrate potential for success. The company and its principals must have good character. For example, if the business owner has recently been convicted of a felony or any crime involving business integrity, the SBA may decline the application. The SBA will also examine federal financial obligations: unpaid back taxes and defaults on SBA business loans, for example, may lead to a rejection.
Some of the initial eligibility requirements are modified for continuing eligibility. For example, once admitted to the 8 a Program, caps on net worth and personal income are raised but not eliminated.
But tread lightly: SBA imposes additional requirements on 8 a Participants to remain eligible, such as limiting the number of withdrawals an individual can take from a Participant and restricting the number of 8 a awards a Participant may receive. Questions about this post?
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