The applicant(s) for 8(a) Certification must devote full-time to the business that is applying for the 8(a) Program with no outside employment. This means that they must generally work at least 40 hours a week during the normal hours of operation of the business that is applying for the 8(a) Program.
If the applicant(s) have an ownership or are an officer, director or partner in any other business, other than the business that is applying for the 8(a) Program, the SBA may very well deny your 8(a) Application.
Why?
As stated above, you must devote full-time during the normal hours of operation of the business. If you have ownership or are an officer, director or partner in another business the SBA will likely conclude that you are not devoting full-time to the applicant business even if you do not devote any hours to the operation of this other business.
How to overcome this potential show-stopper?
a. You can dissolve this other business and provide evidence of dissolution to the SBA during the application review process.
b. You can formally resign your officer, director or partner position in this other business and provide evidence of resignation.
b. You can sell your ownership in this other business. The sale must take place at fair market value and you must be able to provide proof of the sale and a copy of any proceeds you might receive. Be sure to factor in any funds you receive as a result of this sale. You must also resign all positions you held in this other business and provide proof of this resignation.
What if the other business is just a business for holding real estate?
If the other business is just for holding real estate and you can prove this to the SBA, you can most likely keep your ownership in this other business since this other business is solely for the purpose of holding and/or protecting you ownership interest in the properties that it holds.
Need assistance with your 8(a) Application? With 15 years and over 2,000 successful applications under our belt, we can assure you that no matter which option you choose, Cloveer will work harder and faster to get your business SBA 8a certified. Contact us today at 813-333-5800 or visiting our website at www.cloveer.com to discover what Cloveer can do for you. We also offer these options for further assistance in completing your 8(a) Application.
Option 1 – 8(a) Application Review
- For those who wish to complete the application on their own we offer an 8(a) Application Review service. Here, one of our 8a program experts will review your entire application, checking it for missing documents and potential eligibility issues. We will then advise you as to how best to modify your application to ensure it will be approved an SBA reviewer.
Option 2 – 8a Application Completion Service
- The majority of our clients however, prefer a little more of a hands-on approach. They recognize the expertise we have accumulated in the over 15 years we’ve been assisting clients obtain 8(a) certification, and want us to put it to use for them. If you opt for our 8(a) Application Completion Service, we will work one-on-one with you to ensure that your 8(a) Application is 100% complete and compliant so the SBA can review and accept it the first time.
