16 Aug 2016

Do Not Let You Other Job Prevent Your 8(a) Certification

In order to apply for an 8(a) certification the applicant must be full-time dedicated to the applicant concern. Therefore, the applicant CANNOT have other full-time employment at the time of the application. If that applicant has other employment it must be outside the normal working hours of business in the similar line of work as the applicant concern. See below for various scenarios:

SCENARIO 1

Year	Employment	Type of Employment	Notes
0-2	8(a) Applicant Concern	Full-time	No issues, the applicant has worked at the 8(a) applicant firm for the past two years full-time.
2			Applies for 8(a)

RESULT – PASS, in most cases there will be no scrutiny
applied to this application.

SCENARIO 2

Year	Employment	Type of Employment	Notes
0-1.5	XYZ Company	Full-time	8(a) Applicant has a full-time job at another company.
0-1.5	8(a) Applicant Concern	Part-time	At the same time the applicant is working at starting their own business part-time.
1.5	XYZ Company	Quits Employment	6 months prior to applying for 8(a) the applicant quits his/her full time job.
1.5-2	8(a) Applicant Concern	Full-time	6 months prior to applying for 8(a) the applicant begins working for 8(a) applicant firm on a full-time basis.
2			Applies for 8(a)

RESULT – PASS, in most cases there will be little scrutiny
applied to Full-time devotion of the firm, the SBA will verify employment
termination information from XYZ Company.

SCENARIO 3

Year	Employment	Type of Employment	Notes
0-1.5	XYZ Company	Full-time	8(a) Applicant has a full-time job at another company.
0-1.5	8(a) Applicant Concern	Part-time	At the same time the applicant is working at starting their own business part-time.
1.5-2.0	XYZ Company	Part-time	6 months prior to applying for 8(a) the applicant changes work schedule and works non-normal business hours for XYZ firm.
1.5-2.0	8(a) Applicant Concern	Full-time	6 months prior begins working for 8(a) applicant firm on a full-time basis.
			Applies for 8(a)

RESULT – PASS, the SBA will verify that the part-time work
schedule for the individual and as long as there are no conflicts with the
part-time work schedule when compared to the typical working hours of the
business they will pass the application on this point. This
employment should be minimal such as 10 hours or less per week.

SCENARIO 4

Year	Employment	Type of Employment	Notes
0-1.5	XYZ Company	Full-time	8(a) Applicant has a full-time job at another company.
0-1.5	8(a) Applicant Concern	Non-Employee	Firm owned by another individual.
1.5-2.0	XYZ Company	Quits Employment	6 months prior to applying for 8(a) the applicant quits his/her full time job.
1.5-2.0	8(a) Applicant Concern	Full-time	8(a) applicant buys a firm with a two year past history and applies for 8(a).
			Applies for 8(a)

RESULT – PASS, the SBA will review the new owners resume and
as long as his/her resume supports the claim that the 8(a) applicant is capable of
running the firm then the application will pass. Note:
the two year length of time in business is connected to the 8(a) applicant
concern not the individual. Therefore in this case no two
year waiver is required.

SCENARIO 5

Year	Employment	Type of Employment	Notes
0-2	XYZ Company	Full-time	8(a) Applicant is working full-time at another firm.
0-2	8(a) Applicant Concern	Full-time; Part-time	8(a) Applicant is also working full-time or part time at the 8(a) applicant firm.

RESULT – FAIL, the SBA will not view the applicant has having
full time devotion to the 8(a) applicant concern.