Applying for 8A certification is a complicated task, especially if some mandatory requirements are not met. To take a more proactive approach, SBA 8a professionals and 8A certification consultants strongly recommend completing some of the prerequisites before applying for such federal programs. One of the essential and mandatory requirements for small business owners, which they need to fulfill before applying for SBA 8A schemes, is to get personal financial life in order. Such an arrangement will help small business owners file their 8A application in a more systematic, well-organized, and methodical manner. The following steps will guide small business owners on how to conveniently resolve personal financial complications to get the most out of the 8A application.

Pay debts

SBA program applicants must pay all types of federal debt (if any) to maintain a good credit score. Federal debts can include bonds, taxes, student loans, etc. In the event a participant is unable to pay federal debts in full, a formal payment plan must be established with bona fide federal agencies such as the IRS, SBA, or Department of Education. The payment plan must be included in the 8A application before it is submitted.

liability record

Before applying to the SBA program, participants should outline all likely liabilities, including car payments, HELOCs, mortgages, credit card bills, etc. The SBA expects the applicant to maintain an open source platform and disclose as many responsibilities and accounts as possible.

Get a general idea of ​​personal assets.

Keeping a record of all the applicant’s assets before applying for the federal program is an obligation. If an applicant is married and owns an asset with the spouse, they must be listed. It is imperative that you inform the SBA of any and all assets or accounts before applying for 8A certification. It has been noted that clients often forget to mention established online accounts or 401k plans they previously joined, resulting in SBA application rejection.

Submit one document for each account

If a participant has an account for any liability or asset, the appropriate document showing its current value must be presented. The SBA does not accept word of mouth as proof of the existence of any account assets or liabilities. Therefore, proper documentation is necessary to validate the existence of the accounts.

Organize all financial documents

The participant must organize all materials in a binder or binder that can be easily accessed while preparing for the 8A application. The statement can be used, if necessary, to submit the application form to the SBA.

If an applicant does not follow the standard rules and format established by the SBA, the application will likely be denied. Meeting financial obligations and keeping financial health in order is one of the most complicated tasks, one that applicants often fail while trying. If a candidate follows the rules mentioned above, it is very likely that he will be able to sort out his finances and get his SAB application in order.