In 2005, I decided to expand my business into the “big hire field.” After research, I determined that SBA 8(a) status was critical to the future success of my business. Here are some tips to help you apply for and receive SBA certification on your own. FYI… The government does not charge you to apply for this program. So what’s stopping you from starting today?
Let me repeat… You don’t have to pay an “expert” to complete this basic government application form. When I started this process, I was somewhat intimidated. by the SBA website. However, as a small business owner, I didn’t have a lot of cash on hand to pay someone else to fill out a form for me.
And…just think about this other aspect…you will be submitting your most personal information in this process. I can only imagine that the companies you pay to submit this form for you may be hiring low-wage individuals who are not attached or even outsourced to a third world country to complete their form. Would you open your tax records or financial records to complete strangers? I won’t. Save your dollars, save your privacy, complete your application on your own, do it yourself!
Also, knowing that government agencies are moving to a paperless mode, it didn’t make sense to download and submit paper documentation. This adds weeks to the application process. Take the time, do it online. I made a commitment to myself not to rush the process, but to complete the application in parts, one step at a time, so that it would be accurate and go through the screening process the first time.
The online application is very simple and it will not cost you anything to apply. You can start/stop the application process at any time to collect the required documents or company references. While you can take your time in the application process, I would recommend that you set a goal to complete it within a week. I was very diligent and finished mine in a couple of days.
If you have any questions about the SBA application process, you can always call the agency and get answers, another free access to advice.
Is there pain in the process? YES. This form will delve into the more personal aspects of your business…business references, tax returns, personal credibility, and finances. So get ready for the bread! But stay focused on the goal you’ve set for yourself…obtaining SBA 8(a) status for your business.
When you apply, you may receive an email from the SBA telling you that you need to provide additional information. If you are a Caucasian woman like me, you may be asked to write a Socially Disadvantaged Narrative. The bad news is… they don’t really give you much information or advice on this document. The good news is… I was once again able to write the narrative on my own (and not pay someone else $1000-$5000 to write my own story) and so can you.
What is the Narrative of Social Disadvantage?
This is a story about her life, in her own words, describing how the circumstances of her life caused her to struggle.
The SBA defines social disadvantage as:
“Socially disadvantaged people are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group. The social disadvantage must stem from circumstances beyond their control.
In the absence of evidence to the contrary, persons who are members of the following designated groups are presumed to be socially disadvantaged:
or black americans
or Hispanic Americans
o Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians)
o Asian Pacific Americans
o Members of other groups designated by the SBA.”
Author’s Note: Members of other groups include caucasian women.
When reading about evidence of social disadvantage, it is important to keep this quote in mind… “However, the statement of personal experiences of an individual in combination with the generalized evidence may be sufficient to demonstrate a social disadvantage.” This is why you SHOULD NOT HIRE SOMEONE ELSE to write YOUR story.
What does the narrative include?
There are three areas where the SBA wants to see evidence of discrimination: education, employment, and commercial work history. You can make a convincing argument, just as I did, by focusing on four areas of your life. Is it so:
o Family Background/Influence: Describe the influence your family had on your career decisions. What was he expected to do with his life/career? What kinds of careers did your parents, siblings, grandparents, or extended family members pursue? How was this different from what you wanted to achieve later in life?
o Educational Background/Opportunities: Educational experiences directly influence your ability to choose careers. Describe your educational background. Do you have a college degree? How long did it take you to complete your education?
o Professional Experience / Earning Capacity: Professional experiences directly influence your earning capacity and overall quality of life. Can you give an example of when you were subjected to harassment in your work environment that had a dramatic negative effect on your overall job performance?
o Commercial Work History / Your experience as a small business owner and potential jobs you were unable to bid or receive.
Prepare to experience buried personal pain
If you’re like me, the decision to become an entrepreneur was a decision that evolved from your life experiences. Perhaps you worked for many years in companies and were not satisfied with the people you reported to or the salary you were paid. His decision to start his own business was based on the opportunities that were presented or denied him.
As you begin to go through the writing process, you may feel a wide range of emotions arise, including: anger, fear, frustration, mental pain, heartache, grief, doubt.
Why do I mention this? Because I experienced these emotions when I wrote my narrative and I want you to be prepared. Creating this document is like opening old wounds, remembering “bad things” and reliving events you really don’t want to dwell on.
He has overcome these bad times to improve his life and that of his family. And it’s so frustrating to count the times you didn’t win, those times you were passed over for promotions and this negativity brings out anger and self-doubt. But it is only a temporary pain and consider it as a positive reinforcement that you made the right decision to start your own business.
That said… Here’s another tip… While you need to set a time limit for preparing this document, take a break and write on it until you start to get too emotional. Stop and come back later to continue writing. Keep the tissues close by and decide that when you complete this task you will have earned a small personal reward for your efforts.
two key points
Here are the two key points to remember as you prepare your narrative:
1. Think of this as a writing exercise: Plan to spend at least 3-4 hours writing, editing, and preparing the final narrative. Keep it in perspective, this is just a piece of paper, don’t stress!
2. Put on your crybaby cap: This is the one time it’s okay to be a crybaby. You are allowed to complain and write about all the people and events that “did you wrong.”
And finally… be sure to add a few quotes to your narrative to back up your claims. I used eight quotes in my seven page narrative. The best way to locate citations is to do a Google search for the keywords you want to emphasize in your narrative. For example, I used the following descriptors: women’s wages, women’s education, women’s careers in Texas
In summary
Getting certified as an SBA 8(a) business is worth it. Remember… You don’t have to hire someone to apply for SBA 8(a) status or write your Narrative of Social Disadvantage. You can do it yourself successfully. If you need any advice on how to write the narrative, please visit the Design2Train website http://www.design2train.com for information on our toolkit.