Frequently Asked Questions
What are the basic eligibility requirements to get 8(a) certified?
Generally, to be approved into the 8(a) Program you must meet these basic
eligibility requirements:
- The business concern must be at least 51% directly owned and controlled by the applicant(s). The business concern must be a for-profit business.
- All applicant(s) must be a US Citizen and reside in the US.
- The applicant(s) must devote full-time to the business that is applying for 8(a) Certification at the time of application submission. This means they must work at least 40 hours per week, during the normal business operating hours, within the business concern without any other outside employment.
- The applicant(s) must have an adjusted net worth of less than $750,000 at the time they apply for 8(a) Certification. Adjusted net worth = Assets – liabilities – (Equity in primary residence + value of ownership interest in business concern + IRA/401(k) or Other Retirement Accounts)
- The applicant(s) AGI (Adjusted Gross Income) cannot be more than $350,000 averaged over the last three tax years.
- The applicant(s) must be considered socially and economically disadvantaged.
- The applicant(s) must also be able to submit a narrative statement of social disadvantage that meets the SBA’s preponderance of evidence standard.
- The business concern must be considered a small business by the SBA. Your primary NAICS code, gross sales and sometimes the number of employees define your size standard that the SBA will base its size determination on.
- The business concern cannot be determined to be economically dependent on one of its clients. Please see the 8(a) Economic Dependency or the 70% Rule Explained article for further information and to determine if your business would be determined to be economically dependent by the SBA.