What is the personal net worth cap for 8(a) certification?

The 8(a) economic disadvantage test in 13 CFR 124.104 has three numbers. An owner who exceeds any one of them is generally treated as having access to capital and credit and so not economically disadvantaged.

Net worth: less than $850,000. Net worth is assets minus liabilities, with three exclusions: your ownership interest in the applicant firm, the equity in your primary residence (except any part of it that came from excessive withdrawals from the firm), and funds in an IRA or other official retirement account. SBA may ask about a retirement account's terms and require you to certify that it is legitimate. A contingent liability, such as a personal guarantee, does not reduce net worth.

Income: $400,000. SBA presumes you are not economically disadvantaged if your adjusted gross income averaged over the three preceding years exceeds $400,000. You can rebut that by showing the income was unusual and unlikely to recur, or that you suffered losses tied to those earnings. Income from an S corporation, LLC or partnership applicant that you can document was reinvested in the firm or used to pay the firm's taxes is excluded.

Total assets: $6.5 million. This is the fair market value of everything you own, including your home and the applicant firm. The only exclusion is retirement account funds. The rule says so directly: exclusions for net worth are not exclusions for asset valuation.

What counts. Every other asset at fair market value: cash, brokerage and savings accounts, a second home or rental property, vehicles, and your interest in any other business.

Your spouse. If you are married, you submit your spouse's financial information separately unless you are legally separated. Your spouse's assets are not added to your net worth, but SBA considers the spouse's finances in judging your access to capital where the spouse has a role in the business or has lent money to, given credit support to or guaranteed a loan for it. Community property laws are not considered.

Transfers to family. Assets you moved to an immediate family member, or to a trust benefiting one, for less than fair market value within two years before applying are counted as yours, unless the transfer was for education, medical expenses or other essential support. Customary gifts for occasions such as birthdays and graduations are not counted.

After admission. At each annual review you submit personal financial information for each disadvantaged owner and a record of transfers to family within the past two years. SBA can find an owner no longer economically disadvantaged because of substantial personal assets, income or net worth, or excessive withdrawals from the firm.

Social disadvantage is a separate test. Since September 10, 2026, individuals show it with evidence under 13 CFR 124.103(c) rather than by group presumption.

If you are over the limits. EDWOSB uses the same three numbers. HUBZone, WOSB and VetCert have no personal net worth test.