SBA Proposes Revised Economic Disadvantaged Criteria for 8(a) Eligibility

Through the new proposed rule, SBA is proposing to keep the economic advantage criteria the same throughout, and not distinguish between initial and continued 8(a) eligibility.  In order to be considered economically disadvantaged for admittance to the 8(a) program (and to maintain eligibility once admitted) the qualifying disadvantaged owner must have a net worth of less than $750,000 (currently $250,000), his or her adjusted gross income (averaged over the three preceding years) may not exceed $350,000 (currently $250,000), and the fair market value of his or her assets cannot exceed $6 million (currently $4 million).  These proposed economic disadvantage criteria would align with the current economic disadvantage criteria to be certified as an EDWOSB.

However, SBA has considered applying a $375,000 net worth standard to both the 8(a) and EDWOSB programs.  SBA concluded that the $375,000 net worth standard may not be appropriate.  SBA is specifically requesting comments on whether the $375,000 or $750,000 net worth standard should be used for both the 8(a) and EDWOSB programs.

Source: Federal Register

SBA is requesting comments on the proposed rule by July 15, 2019 
Submit Comments HERE

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