Your small business stands a good chance of getting approved for the SBA 8a certification once you enclose your primary NAICS code along with your application form. The SBA (Small Business Administration) encourages all 8a certification applicants to provide their NAICS code to them along with their 8a applications. There are 2 primary reasons for that –
1) The Primary NAICS code of your company indicates the largest part of your business’s revenue which you have earned in the recently completed annual fiscal year.
2) It also proves to the SBA 8a certification authority that your business is in good standing for the last 2 years. If your business isn’t in a good financial standing you are eligible to opt for a 2 year waiver from the concerned authority.
Let’s take a look at the 3 primary reasons for determining the NAICS Code for your small business –
• The SBA wants to understand and document what the 8a applicant business firms consultation are specialists in. It is the duty of the small biz owners applying for 8a certification to let the SBA authorities know what their primary business activity really is. You must produce all of your supporting documents to the SBA to verify your NAICS standard. These include the hard copies of invoices and tax returns of work done for clients’ showcasing your prowess in the respective departments.
• The SBA 8a certification authority needs a proof of your business’s ‘largest revenue earned’ value in the last fiscal. Your primary NAICS code will sufficiently indicate this figure to the SBA. NAICS code is a cryptic 6 digit code that clearly indicates what your business category is and how much have your earned as your highest revenue in the previous fiscal.
• More than anything else your primary NAICS code will indicate your “SBA Size Standard Limit” You must understand that the basic requirement for 8a applicants to be considered for SBA 8a certification is that their business has to fall within the ‘small business’ category. If your business doesn’t fall under the small biz section, as per the NAICS code you provided, you won’t be fit to apply for the coveted 8a certification.
Thus, you can see why requiring your NAICS code is an absolute must for the SBA authority. To know more about the SBA 8a certification process, stay connected.
