Disadvantaged business owners are able to apply for assistance through the U.S. Small Business Administration (SBA). Strict eligibility requirements are associated with this type of assistance, and one of the eligibility requirements you will have to meet if you apply is a great potential for success.
The SBA doesn't want to invest money in companies that are destined to fail. If you understand how the SBA determines a company's potential for success, you will be able to draft a more comprehensive and appealing application for financial assistance.
One of the first things that the SBA will evaluate when assessing a company's potential for success is the company's financial capability. Bank records, tax returns, and other financial statements will be submitted with your application when you request assistance from the SBA. These documents allow the SBA to look at your access to financial capital and the manageability of your debts.
Your company's financial performance will be scrutinized to ensure you have a track record of handling money responsibly. Proving financial capability is essential in proving your company has potential for success.
Managerial and Technical Capability
The SBA wants to know that all companies they extend financial assistance to are being run by qualified individuals. Your performance on past contracts will be evaluated to determine if your company was managed efficiently. You will also be asked to submit documentation showing any technical certifications, licenses, or advanced education that members of your workforce hold. Managers and workers who have technical capabilities significantly contribute to a company's potential for success.
All of the managers working within your company will be scrutinized by the SBA when you apply for financial assistance. Quality managers are essential to the success of any company, and the SBA knows this. Management capability will be evaluated by looking at the education, experience, and training each of your managers have. Any managers who have recently been hired by your company will be required to provide information about the complexity and magnitude of previous jobs to determine their management capability.
Be prepared to supply copies of professional licenses and resumes to show the SBA that your company has potential for success.
Everyone wants to believe their company will be successful, but the SBA requires evidence that this belief is based in reality. Include pertinent documents with your application for financial assistance if you want the SBA to accurately determine the potential of your company.
If you need help with your application, get SBA 8(a) application assistance.