If you are the owner of a small business organization, seeking SBA 8A approval in order to administer and monitor the day-to-day operations of your company, fulfilling the 2 year business criteria is one of the fundamental requirements.
It is mandatory for your particular business concern to have more than 2 years of consecutive tax returns which demonstrating adequate yielding of revenue. However, there may be an exception to such a rule, which can benefit your business greatly. If your business concern is successful in proving the SBA that it has adequate expertise, resources, contracts and revenue to thrive within the 8A program, it is quite likely that your organization will be waived the 2 year requirement. The SBA waives the business requirement for 2 years, if certain conditions are met, including:
Ample business management experience
In order to meet the criteria, your particular business concern must display adequate management experience. In addition to it, the key individuals of your business must have requisite technical expertise along with the necessary license and certificates to support the condition.
Adequate technical expertise to carry out the business strategies
In order to meet this condition, you need to provide a business plan which gives enough detail about your products, services, sales, management, financial and personal goals. It should be accompanied with special technical knowledge of your team members required to sustain your organization.
Reasonable amount of capital
Adequate working capital that can sustain your daily business operations for a period of 3 months is sufficient to meet this condition. Fulfillment of such a condition guarantees the SBA of your business approach.
Excellent track record in governmental and non-governmental contracts
It is mandatory for you to successfully complete at least 2 contracts and provide proof for the operating revenues earned in the process to seek 8A certification.
Ability to obtain the facilities and equipments required to complete a contract
To meet this condition, you must provide adequate explanation regarding how your business will obtain facilities, personnel and equipments on time to successfully complete the business.
