When do you consider availing a 2 year waiver while applying for 8a certification? Well, it depends on the vastly different scenarios of your present business standing and its performance over the course of the last 2-3 years, to be more specific. Let’s sum it up! To begin with let me inform you that there are two basic criteria put up by the SBA (Small Business Administration) when your small business is looking to avail the 2 year waiver in your quest for gaining the 8a certified advantage. These are as follows –
1. Your small business should and must be in operational mode for the last 2 years without break. Further you have to prove this by way of submitting two separate tax return documents (for the two consecutive years) to the SBA along with your application form, in support of your declaration.
2. Your company should generate a substantial revenue in the “primary NAICS code” in the two years preceding your 8a certification application.
By the way, your business’s Primary NAICS code is a 6 digit cryptic code that shows the largest amount of revenue your small business has generated in the last fiscal term end. The NAICS code for your business will help determine its competency in the quest for achieving the coveted 8a certification advantages.
The above 2 conditions are to be met stringently by the applicant firm before setting their target on achieving the 8a certification. Also a very important point to note in this regard is that, there are no specific guidelines available for the 8a applicant(s) to determine what particular sum of revenue earned needs to be shown to the SBA for availing 2 year waiver. Since there is no upper revenue limit, your business can be eligible with a net turnover of say $50K or $250K.
The SBA (Small Business Administration) in addition to checking the amount of revenue earned by the 8a applicant firm also takes a close look at who the contractors were and what are the sources of revenue for the firms. The general standpoint for SBA is, when an applicant company has $250 K revenue generated in the first year itself or $200 K revenue generated in the first 1.5 years; it stands good to be considered for a 2 year waiver to cash in on the 8a certified advantage.
For a detailed understanding of the different 2 year waiver criteria with different scenarios, take a look at this video –
https://www.youtube.com/embed/f2s3yLDeQsg
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