The 8a certification is run by the Small Business Administration (SBA) of the government of the United States. 8a certification is a kind of ownership and diversity certification. By obtaining the 8a certification you will be able to become a participant of the 8a Business Development Program. The 8a program is a nine-year business development program in the United States. The program provides business training, counseling, marketing, and technical assistance to small businesses. Due to all these reasons, we recommend you apply for the 8a certification.
Obtaining an 8a certification by going through the application process and fulfilling all the requirements is quite tough. Make your business meets the eligibility criteria. Without making your business eligible you will not be able to go through the process of the 8a application. It is a fact that 70% of all 8a applications to the SBA are rejected.
Numerous aspiring entrepreneurs and contractors are applying for the 8a certification. By making adequate preparation you can obtain an 8a certificate. By getting into the 8a Business Development program you will be able to get several benefits.
In this blog, we are going to mention all the reasons to apply for the 8a certification. All the reasons are beneficial factors that encourage contractors to obtain the certification and sell products and services in the federal market.
Less competition
The certification of Small Business Administration (SBA) filters out the uncertified competitors from the competition ground. The certification limits the competition so that the certified companies can obtain government contracts easily. The government has decided to do so because it becomes tough for newcomers to compete with established entities in the saturated market. The certificate gives headroom to certified firms for excelling in their career in the federal market. So due to less competition, federal contractors apply for 8a certification.
Sole-sourcing contracts
Sole-source contracts are considered the most benefitting factor for the 8a-certified companies. It is a type of government contract which allows 8a-certified companies to obtain without going through the bidding process. As a result, the certified companies are able to secure contracts without competing with other entities or contractors. So due to sole-source contracts, federal contractors apply for 8a certification.
Red-tape reduction
The 8a-certified firms eliminate the red tape which is involved in federal contracting. The term red tape in the federal market means the excessive regulations or rigid conformity to formal rules that are considered to be bureaucratic in a sense. By reducing the red tape in contracting to some extent, businesses can run smoothly without submitting complex Request For Quotation forms.
Larger contracts
8a certified companies receive larger government contracts. These large government contracts hold immense value for federal contractors. As a result, the companies get the scope of achieving growth by generating revenue for a long time consistently. The certified companies do not need to rely on multiple government contracts. Due to this reason, federal contractors apply for 8a certification.
These are the most common reasons which drive federal contractors to apply for 8a certification.
Eligibility Criteria & application process to obtain 8a certification
Let’s look at the eligibility criteria to obtain the 8a certification.
- Businesses that are applying for the certification need to be small according to SBA.
- The companies have to be owned and controlled by U.S. citizens.
- At least 51% should be owned and controlled by U.S. citizens.
- The business owner must be a socially and economically disadvantaged individual.
- The business owners must have at least two years of experience.
- The personal net worth of the business owner should not exceed $750 thousand.
- The total asset should be $6 million or less than that.
- The gross income should be $350 thousand or less than that.
- The business owner should demonstrate good character.
To apply for 8a certification applicants need to go through a complex and time-consuming procedure. We have broken down the process into three simple steps so that the readers can understand.
- Identify your primary NAICS code.
- Register your business with the System for Award Management (SAM) of the United States.
- Apply for 8a certification.
Learn precisely about each of these steps to go through the process smoothly. You need to know to identify your primary NAICS code for your business and learn more about registering with the System for Award Management. Make sure to learn more about the application procedure for the 8a certification as well.
Conclusion
So now you know the reason to apply for 8a certification it is your time to take a step forward to get into the 8a Business Development Program. We have also mentioned the eligibility criteria and the steps to complete the application process. Once your company receives the certification you will be able to get all the benefits of doing business in the federal market of the United States.