When you apply for the 8(a) Program the SBA will look at your current year to date and the past two to three years of revenue and whom it earned its revenue from. If you have earned revenue from a client who happens to be your past employer the SBA may take issue with this.
The relationship your firm has with your former employer can have a negative impact on your ability to get successfully 8(a) Certified if it results in the ability for them to impact the ability for you to control your firm. Earning a large percentage of your revenue from a past employer may result in the SBA denying your application.
As stated above, the SBA will look at your mix of clients and if a large percentage of your revenue comes from a past employer they could possibly try to affiliate you with your past employer since you had a employer/employee relationship. There is no magical number for the percentage since they look at the totality of the relationship such as contracts, subcontracts, sharing of employees, facilities, etc.
If you do have a relationship with your former employer you should try to keep any possible affiliation to a minimum.
To determine your overall state of 8(a) eligibility including possible issues such as above, please visit https://cloveer.com/8a-eligibility-questionnaire/ and complete/submit your responses to us for a free eligibility analysis.
Need assistance with your 8(a) Application? With 15 years and over 2,000 successful applications under our belt, we can assure you that no matter which option you choose, Cloveer will work harder and faster to get your business SBA 8a certified. Contact us today at 813-333-5800 or visiting our website at cloveer.com to discover what Cloveer can do for you.