Getting an 8A certification is perhaps the most important thing for a small business organization these days. Such official recognition will help small business concerns to apply for governmental contracts and get benefitted. The SBA- Small Business Administration offers adequate aid to socially and economically disadvantaged businesses to obtain government contracts via the 8A business development program. This consequently results in strengthening the economy and promotes the small businesses extensively. However, there are some pre-requisites to be met while applying for 8A certification including:

Basics

For experienced small business organizations, 8A programs offer an extensive range assistance and support that features management counseling, development analysis and technical assistance. Such support which will help an organization to flourish extensively by guiding the procedure to acquire federal prime contracts. Due to the rigorous eligibility criteria, it is highly recommended to evaluate the requirements before the process is initiated. To guide an organization more conveniently through the entire 8A application process, SBA along with Service Corps of Retired Executives (SCORE) and Women Business Centers (WBC) offer free counseling to assist them in their approach.

Financial condition

It is mandatory for an applicant for 8A program to be in business for at least 2 years in a row, displaying its competency by its effective management fundamentals. In addition to the business existence, financial statements of the firm are required. The applicant must be financial capable to achieve success in the 8A program and should hold positive equity. The small business organization should notbe marred with negative equity and the cash flow should be positive to avoid the red flag from the SBA. The working capital of the company should be adequate enough to meet the daily expenses of the business. For a complete analysis of the SBA, the last 3 years of business tax returns of the company should be provided.

Credentials of the owner

Socially or economically disadvantaged individuals (such as ethnic and racial minorities) who can demonstrate discrimination of the business should operate the business. Such disadvantaged individuals worth less than USD 250000, excluding the business and residence value.

Business Requirements

The business of the applicant must provide products and services, which meet the standard for federal contracts. Such federal contracts are related to various sectors such as manufacturing, construction, office support systems, information technology, security and landscaping services. The particular business should be large enough to pursue federal contracts and complete them. Previous contracting expertise with any federal or state agency can display the contracting competence of the small business concern.

Purpose

In order to get the most out of the agenda, the objective of a small business concern should be in sync with the 8A certification program, which is to flourish the business by acquiring the federal contracts. In few cases, an applicant may qualify as the owner of a business owner of the program, but the business may not be eligible since the objectives and goals are not in sync with federal contracting.

8A certification offers the biggest official recognition to small business organizations. If the above-mentioned pre-requirements are met, 8A certification can be acquired conveniently in a hassle free manner.