When evaluating economic disadvantage, does SBA include assets that an individual claiming disadvantaged has recently transferred to another individual?
SBA will attribute to an individual claiming disadvantaged status any assets that the he/she has transferred to an immediate family member (or to a trust where an immediate family member is the beneficiary) for less than market value within two years prior to the firm’s application for participation in the 8(a) program. A transfer of assets for “fair market value” based on verifiable independent documentation would be excluded. Also excluded are transfers for education, medical expenses, certain forms of essential support, and transfers that are consistent with the customary recognition of special occasions (e.g. birthdays, graduations, anniversaries, and retirements). The disadvantaged applicant must show proof of the reasons for these asset transfers.
Related Questions
- When evaluating economic disadvantage, does SBA include assets that an individual claiming disadvantaged has recently transferred to another individual?
- When evaluating economic disadvantage, does SBA include assets that an individual claiming disadvantage has recently transferred to another individual?
- What factors are considered when SBA evaluates the economic disadvantage of an individual?
