If your current majority owner (a non-disadvantaged individual) is considering transferring majority ownership and relinquishing the highest ranking officer position to his spouse, the 8a application will be looked at in great detail by the SBA, for a so called 'Front'. The SBA regulation CFR 124.106 clearly states: Non-disadvantaged individuals who transfer majority stock ownership or control of the firm to an immediate family member within two years priorto the application and remain involved in the firm as a stockholder, officer, director, or key employee of the firm are presumed to control the firm. The presumption may be rebutted by showing that the transferee has independent management experience necessary to control the operation of the firm. Technically, if the spouse has the independent management experience necessary to control the operation of the firm and the non-disadvantaged individual is no longer involved in the firm, it can be done. In my experience, as a consultant who assists firms to get 8a certified, it rarely happens. The SBA reviews every 8a application in great detail so if they are trying to pull something over their eyes they will be discovered. Rick OteroPresident/CEOCloveer, Inc. cloveer.com ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

I work for a company that is not 8a and its owner/managment is now considering hopping onto the 8a bandwagon because he has married a women from a defined disadvantaged group.  He wants to make her the ceo so the company will now be minority woman business owned.  I guess I have extremely high ethics and now I wonder if I even feel like working here anymore.  To me this represents nothing but fraud and has nothing to do with the spirit of the 8a cert.  Should I do nothing or should I report this fraud.

By all means get any help you can - if SCORE can provide assistance then grab it with both hands.

There is a lot of info out there about the SBA 8a program and the 8a certification. I work full time in helping get companies 8a certified. If I can be of help just put a note up here and I will be happy to help the best I can. The 8a application process is long and complicated but can be done by any one who is willing to put some time into it and is organized. Feel free to check us out at ez8a.com. My name is Mark and I am one fo the senior partners. ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

One of my clients became certified this year and his business really took off, so good luck! He spent quite a bit of money on a company which helped him through the process, but he was successful even though he did have to appeal an initial rejection. If money is an issue, I know that SCORE has people who can take you thorugh the process for free. You have to make sure you have healthy financials. They will look closely at your balance sheet (ratios and all)

Hi   I am a SBA 8a company since 2005. I run an online training business so I truly have a virtual business - so no issue about having  a home based business.   Here are some other issues you may want to learn more about. 1) Check out the zoning laws in your community - you may need a permit. Esp if you have a lot of people coming / going from your house.    2) I have a UPS Mailbox since my business basically runs on the Internet - so I do not use my home address.  Also they will sign for all packages and it is much better than a PO Box - it appears as a suite - for example: 123 West Street, Suite 180-188   3) If you are just starting out, spend your money on marketing, not a structure if you can get by without one.    Best wishes in your pursuit of SBA 8a. Karen

Being home-based shouldn't affect eligibilty for the 8(a) program.  Here are the SBA 8(a) regulations, if you want to read into it further:   http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&tpl=/ecfrbrowse/Title13/13cfr124_main_02.tpl    Wayne Hinton FedBizAdvice, LLC

I agree with all the comments posted so far. There is no doubt at all you can be a home based business and get a SBA 8a certification. I help certify businesses through my company ez8a and have successfully certified many home based businesses. The only difference with a business that is home based is that you have to write a letter to explain the lack of a lease and making it perfectly clear their are not control issues related to the companies free rent. I alway include a copy of the dead to the home and the most recent tax bill to make this control issue perfectly clear....Good Luck Mark Ryan Message Edited by ChristineL on 12-02-2009 11:40 AM

This is a heads up to all looking at pursueing a SBA 8a certification. On October 28, 2009 the Small Business Administration proposed rule changes to the Federal Register that will change some of the qualification for 8a certification. I have been blogging about these changes on my blog and you can read a little about them there. One area the SBA is addressing is looking to correct items that have been its standard operationg procedure for some time that are not real regulations or are only based on appeal decisions. The SBA is looking to change some economic disadvantage criteria to make it a little easier for certification and change some other criteria that are a little too restrictive. The SBA is also closing some holes that have let entry into the program become a little too expansive. If you want to understand the changes a little better and do not see what you want on my blog you can check out ez8a.com or 8acertification.net as they are experts on the process as well. Good Luck... Message Edited by ChristineL on 01-05-2010 09:54 AM