(818) 551-9400
The SBA 8(a) Certification, like other Certifications have rules an guidelines which each business must qualify for prior to applying. Below is the clarification on the Economically Disadvantaged Rule.
Economically Disadvantaged:
A. Personal Income- The SBA requires that the Individual claiming Disadvantage must have a Personal Income less than $250,000 on average for the past 3 years. If the 3 year average is greater than $250k you are no eligible. Once admitted in to the program, this threshold increases to $350,000.
B. Personal Net Worth- The individual claiming disadvantage must not have a Personal Net Worth greater than $250,000. This does not include, the equity you possess in your personal residence, any retirement accounts you have or the equity in your business. The reason for this being, all of these assets are assumed to be used for your business at one time or another. However, if you do own Investment properties or other business, the equity in each will be calculated toward your personal net worth.
SBC Consultants, Inc.
www.sbcconsultantsinc.com/
paul@sbclending.com/
818-551-9400
