subject: How To Get Your Personal Financials In Order Before Applying For 8a Certification [print this page] With large number of 8A certified firms around the nation, small business owners often attempt to have a more proactive approach while applying for the certification program. One of the best things to do to prepare for 8A programs is get your personal financials in order to make sure that application for SBA certifications is well-organized, complete and detailed.
A well organized and updated application is always preferred by the 8A SBA. Since the SBA has to check dozens of documents every week, it becomes impossible for the management professionals of the 8A SBA to examine an unorganized application. It delays the overall application process and creates a negative impression about the applicant. Hence, make sure that before you apply for the federal programs, all your essential documents are in order.
Pay off your debts
If you have any pending debt with the federal government such as student loans, taxes, liens etc it is highly recommended to pay it off. In case you are unable to pay off the federal debt completely, it is better to form an effective payment plan with trusted federal agencies such as the SBA, IRS or the Department of Education. Make sure to include the effective formal payment plan inside the 8A application.
Prepare a gist of all your personal assets
Make a complete list of all your personal assets including the one owned by your spouse, if you are married. Mention in your asset list that 50% of the asset is owned by you. SBA requires keeping a record of all the assets and accounts you ever had. Even the small checking accounts created online or any 401k plan leftover at any previous job and not transferred into own brokerage are required to be mentioned in the list.
Provide document for every asset or liability
For every account you hold, be it for liability or asset, it is imperative to provide a document that displays its present value. Documents are necessary to provide to prove the existence of the assets and liabilities you hold.
Prepare a list of all the liabilities you have
Make a note of all the liabilities you possibly have such as car payments, mortgages, credit card accounts HELOCs etc. According to the rules of the SBA, if you want your company to get 8A certified you should openly divulge all the details regarding your liability and all the accounts you have. Like your assets, remember to mention the liabilities which you have shared with your spouse.
Use a folder
Put all the accumulated documents in a folder or in a binder. This would help you to organize your 8A application properly and complete your personal financial statement. You can also upgrade your account statements if required while submitting the Form 413.
Arranging the documents and placing them in order is essential to help the SBA consider your firm for 8A certification. By adhering to the above mentioned documents, it is quite likely that you will be able to avoid any kind of complication regarding your financial documents of the company and complete your federal program in a hassle-free manner.
by: Cliprivaldo
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