If you have been thinking about submitting an 8(a) application to the SBA, the following list shows the items you should review carefully BEFORE submitting your application. Once you submit your application, even a simple change will come under much greater scrutiny from the SBA and will most likely result in a delay in your approval or even a denial of your application.

1. Company website

on. Is the owner of 51% of the company listed in the highest position within the company?

B. Does the website test the skills and experience of other members of the management team?

vs. Does the website have a different address than the address used in the 8a application?

D. Does the website present the business in a professional manner?

2. Credit report

on. Have you pulled out your personal credit report lately?

B. The SBA will primarily seek undisclosed assets of core members.

against If you have any judgment or lean against you, the SBA will reject it if you have.

3. Websites of the Secretary of State

on. Do you have other shell entities (corporations or limited partnerships, etc.) that exist but are not used to conduct business?

B. Do any of these entities have a similar name or related purpose to the business you are seeking 8a for?

4.Google search

on. The name of the company and its principles must be searchable on Google.

B. There may be information on the web that needs to be removed because it will confuse the SBA or explained as part of the application process 8a.

5. LinkedIn

on. Your LinkedIn profile and that of your key employee must match the resume you are submitting to the SBA.

6.References

on. Do not include references as part of your 8(a) application that you have not called and said what you are using them for.

B. The SBA has called our clients in the past, especially when an application is 50% or less of a presumptive group or their spouse works for them and applies for 8a.

7. Zillow Securities

on. The real estate values ​​you are listing on your personal financial statements must be examined against Zillow.

B. If the Zillow values ​​do not accurately reflect the value of the property, more credible evidence will be needed as part of the 8(a) application.

8. Review Summaries

on. The resume of the majority (51%+) of the owner must show experience in the industry in which the 8(a) application is filed.

B. A resume that is not credible and shows that the business owner was unable to run the business may cause the SBA to deny the 8(a) application.

Con Ensure duties show executive duties (client development, policy monitoring and improvement, procedural leadership).

D. Screen the resumes of all key employees for anything that might give SBA reason to review that employee’s negative screen for more substantial technical background.

9. Check arrest record

on. Applicants often forget about a misdemeanor received decades ago and mistakenly fail to disclose it during the 8(a) application process.

B. This can create a denial because the SBA will see it as an integrity issue.

against The SBA conducts an FBI background check on all applicants, so the SBA will detect failure to disclose.

10. Articles of Association

on. The language in the corporate bylaws that relates to voting rights and control of the company should be reviewed.

B. If the statutes are confusing, it is advisable to simplify them.

Cons Note that any statute that alters the control of the company from the unconditional control of the 51% owner could result in a denial.

11. Contracts

on. The company’s contracts with its customers should be reviewed and the business owner should be the signer of all contracts.

B. If the owner is not signing these contracts, and someone else has been delegated to do so, the SBA will often conduct further exploration to determine if the contract signer is in control or a critical component in operating the business.

12. Signature Cards

on. In most cases, the 51% owner of the business must be the sole signer on the account(s).

13. Leases

on. The lease must be in the name of the company requesting 8a.

B. If the business sublease space from another business in the same industry, or there is another connection to the landlord, carefully consider whether or not this landlord may show control, or whether there is the appearance of a pooling of resources between the applicant business 8a and other.

con Expect the SBA to pay close attention to commercial leasing.

14. Purchase Agreements

on. If the company requesting 8a was purchased and there was existing debt, there should be no recourse.

B. Also, if a controlling interest was purchased from a previous owner, that owner may no longer work in the business, or this will create a control issue if the purchase was within the last two years.

against The transaction should have taken place at fair market value.

Ez8a makes sure that the guidelines shown above are met, or that a good explanation is available for any deviations when questions from the SBA arise.