In 2005, I decided to expand my company into the “big hiring field.” After researching, 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 do not have to pay an “expert” to complete this basic government application form. When I started this process, I felt somewhat intimidated. per the SBA website. However, being a small business owner, I didn’t have a lot of cash available 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 maybe hire low-wage people who are not tied to or even outsourced to a third world country to fill out their form. Would you open up your tax records or financial records to complete strangers? I will not do it. Save your money, keep your privacy, complete your application on your own, do it yourself!
Also, knowing that government agencies are going paperless, there was no point in downloading and submitting paper documentation. This week joins the application process. Take your time, do it online. I made a commitment not to rush the process, but would fill out the application piecemeal, step by step, so that it would be accurate and go through the screening process the first time.
The online application is very simple and it will cost you nothing to apply. You can start / stop the application process at any time to collect the necessary 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 in one 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 tips.
Is there pain in the process? YES. This form will delve into the most personal aspects of your business … business references, income statements, personal credibility and finances. So prepare for the pain! But stay focused on the goal you’ve set for yourself … to earn SBA 8 (a) status for your business.
Upon submitting the application, you may receive an email from the SBA stating that you need to provide additional information. If you are a Caucasian woman like me, you may be asked to write a social disadvantage narrative. The bad news is … they don’t really give you much information or advice on this document. The good news is … I was able to rewrite the narration on my own (and not pay someone else $ 1000- $ 5000 to write my own story) and you can too.
What is the social disadvantage narrative?
This is a story about her life, in her own words, that describes how her life circumstances caused her to have to fight.
The SBA defines social disadvantage as:
“Socially disadvantaged people are those who have been subjected to racial or ethnic or cultural prejudice due to their identity as members of a group. Social disadvantage must come from circumstances beyond their control.
In the absence of evidence to the contrary, individuals 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 Pacific Asian 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 an individual’s personal experiences in combination with the general evidence may be enough to demonstrate social disadvantage. “That is why you MUST NOT HIRE ANYONE ELSE to write YOUR story.
What does the narrative include?
There are three areas the SBA wants to see evidence of discrimination: education, employment, and business work history. You can make a compelling argument, as I did, by focusing on four areas of your life. They are:
o Family History / Influence: Describe the influence your family had on your career decisions. What were you expected to do with your 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 make career decisions. Describe your academic background. Do you have a college degree? How long did it take you to complete your education?
o Professional experience / earning ability: Professional experiences directly influence your earning ability 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 Business Work History / Your experience as a small business owner and potential jobs that you were unable to bid or receive for.
Be prepared to live through buried personal pain
If you are like me, deciding 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 or the salary they paid you. Your decision to start your own business was based on the opportunities that were presented or denied you.
As you begin to go through the writing process, you may feel a wide range of emotions erupt, including: anger, fear, frustration, mental pain, anguish, sadness, doubt.
Why am I mentioning 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 think about.
You have made it through these bad times to have a better life for yourself and your family. And it’s so frustrating to recount the moments when you didn’t win, those moments when you were passed over for promotions and this negativity brings out anger and doubt. But it’s only a temporary pain and consider it a positive reinforcement that you made the right decision to start your own business.
With that said … Here’s another tip … While you need to set a time limit in preparing this document, take a break and write in it until you start to feel overly emotional. Please stop and come back later to continue writing. Keep the tissues handy 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 when preparing 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 document, don’t stress!
2. Put on your whiner cap: This is the only time it’s okay to be a crybaby. You have permission 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 on my narrative page of seven. 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) signature pays off. Remember … You don’t have to hire anyone to apply for SBA 8 (a) status or write your Social Disadvantage Narrative. You can do it yourself successfully. If you need any advice on how to write the narrative, visit the Design2Train website http://www.design2train.com for information on our toolkit.