When you apply for the 8(a) Program the SBA will look at your current year to date and the past two to three years of revenue and whom it earned its revenue from. If you have earned revenue from a client who happens to be your past employer the SBA may take issue with this.
The relationship your firm has with your former employer can have a negative impact on your ability to get successfully 8(a) Certified if it results in the ability for them to impact the ability for you to control your firm. Earning a large percentage of your revenue from a past employer may result in the SBA denying your application.
Why?
As stated above, the SBA will look at your mix of clients and if a large percentage of your revenue comes from a past employer they could possibly try to affiliate you with your past employer since you had a employer/employee relationship. There is no magical number for the percentage since they look at the totality of the relationship such as contracts, subcontracts, sharing of employees, facilities, etc.
If you do have a relationship with your former employer you should try to keep any possible affiliation to a minimum.
To determine your overall state of 8(a) eligibility including possible issues such as above, please visit http://www.cloveer.com/8aquestionnaire.html and complete/submit your responses to us for a free eligibility analysis.
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.
