8a Certified Small Business Can Have Many Advantages: When Is The Best Time To Apply?

Having a small and disadvantaged business doesn’t mean you will get your company 8a certified. There are several SBA 8a certification requirements, which a company needs to meet to obtain the 8 a certification. Every company’s evolution occurs in stages and it is difficult to point out the best time in a company’s development cycle to apply for 8a certification.

However, here is some quick advice from an 8a certification consultants based upon their 10 years of observation on various 8a companies:

Brand new small firms shouldn’t apply for SBA 8a certification

According to the United States Small Business Administration or SBA the 8a business development program is not for startups. SBA doesn’t want to include startup companies in the program. So, if you have launched your company recently, you need to do business for some time and be in the industry for at least six to twelve months or more to apply for the certification program.

You should at least have one federal tax return

In compliance with 8a rules and regulations, a business is not eligible to enter the 8a business development program unless it has one federal tax return. The tax return should show revenue on it. If a tax return doesn’t show any revenue, the SBA will not consider you to be eligible for the program.

2 years old company with financial stability

The best time for small businesses to apply for the 8a program is when they cross the two year mark. The company is going to have very less trouble in obtaining the certification if it is two years old, has attained financial stability and received revenue for two or more years (it needs to be shown in the federal tax returns). Being financially stable doesn’t mean you need to earn a lot of profit or need to have a phenomenal growth rate. Your finances must prove the government that your firm is sound enough to fulfil the federal contracts. However, if your firm is going out of business, don’t apply for 8a certification.

If your company is not two years old you need to enter higher barriers

The SBA 8a rules generally demand the firms to be at least two years old in order to enter the program. However, even if it’s not two years old, it can enter the program but it will be judged by stricter standards than other small companies that have already been in operation for two years. Your firm needs to be financially stable, positive and healthy if you want to get into the program early. If your firm is financially unsound and is not even two years old, don’t apply for 8a certification because you will just waste your time and efforts. Apply afterwards when your company is in a better financial condition or has already marked the two year period.

Always remember one thing—do not hurry to apply for this program. Only when you think you are eligible for the program, apply for it. Rushed, premature 8a applications are hardly successful. So, the best thing you can do is wait until the time is appropriate and your firm is mature enough for the 8a certification application.

Bio
Latest Posts

Era

Small Business Certification Consultant at Advance 8a

Era Lion is a business consultant. He advises small businesses on 8 a certification, HUBZone certification and other SBA certifications helping a small firm to grow. He even writes articles and blogs on these topics. Here he writes about how small businesses can get an access to federal contracts.