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Application to Waive the Two Years in Business Requirement

The Small Business Administration regulations for entry into the 8(a) Business Development program state that in order to apply you must have at least 24 calendar months of contract history with your applicant business. However, the SBA regularly makes exceptions to this rule if you can meet the requirements of the Length of Time in Business Waiver. As such, it may be possible for you to proceed with your application today.

There are five conditions you must meet for this waiver:

1) Contract History 

One of the most important areas of this waiver is your contract history. It is mandatory that you have at least one completed contract, as well as one current contract to show the Small Business Administration. The more completed contracts you have to show, the more stable your business appears to the Small Business Administration. It is also important to take into account the size of the contracts. If you have been in business for a mere six months, and have completed two contracts worth $5,000, this may not be enough to satisfy the SBA. We can help you determine whether or not you have a case.

2) Access to Capital 

Another important part of this waiver is providing the Small Business Administration with proof that you have access to capital. While this program is designed to help you grow your small business, the SBA also wants to make sure that you have the ability and support to complete large, government contracts. One way to provide assurance to the SBA that you have this capability is by providing evidence that you have access to capital. 

3) Access to Equipment/Personnel

Not only is capital an important part of this waiver, but the Small Business Administration also wants to know that you have access to equipment and personnel. It may be that you already have the equipment needed to completely perform in your industry, and already have a fully staffed business. This is not always the case. In the early stages of business development, the business owner is often the only employee. While this is perfectly acceptable, the SBA likes to know that you have planned ahead and are aware of the positions that will need to be filled as your business grows. The SBA also wants to know that you have access to potential employees with the skills required to perform the duties needed should you start working on large government contracts.

4) Management Experience

When applying for this waiver, you will also be required to provide the SBA with a copy of your resume. This is to ensure that you have the management experience needed to operate a business in your industry. It’s important to understand that the SBA is not interested in seeing you held an entry level position. They want to know that you were responsible for the monitoring of day-to-day business activities.

5) Business Plan

The final item that the SBA will want to see is a current business plan. This does not have to be anything elaborate, but the SBA does want to see that you have goals for you business. They also want to know that you are monitoring and documenting your growth as you meet and exceed your current goals and set new goals for your business.

The Length of Time in Business Waiver can be very intimidating and tricky. Don’t let this stop you from moving forward with you application. To schedule your free, no-obligation, private consultation about how we can help your business qualify for the SBA 8(a) certification program and its requirements, phone 571-222-4170 or click here to email.