Adjusted Gross Income Limit (SBA 8(a)) is a crucial term used in the context of Small Business Administration’s (SBA) 8(a) Business Development Program. This limit is a financial threshold set by the SBA, determining eligibility for participation in 8(a) program. The measurement is based on the individual’s adjusted gross income average over three years, prior to the application.
SBA uses Adjusted Gross Income Limit to ensure that the program’s benefits are channeled to individuals who are economically disadvantaged. If an individual’s income exceeds the set limit, it could be an indication of economic advantage, potentially resulting in the denial of 8(a) program application. Therefore, understanding and staying within this limit is vital for businesses aiming to benefit from SBA 8(a) program.
