Understanding Entity-Owned

Understanding Entity-Owned

Entity-Owned (EO) refers to a small business owned and controlled by one of five SBA-approved Controlling Entity types:

  • Alaska Native Corporations (ANC)

  • Native Hawaiian Organizations (NHO)

  • Community Development Corporations (CDC)

  • American Indian Tribes (AIT)

  • Agricultural Cooperatives (AGCO)

These structures (often corporations or LLCs) are designed to meet ownership, liability, and tax needs while qualifying for SBA certifications like 8(a).


To qualify for EO certification (primarily under the 8(a) program), the applicant business must prove—through documentation and verification—that its Controlling Entity holds at least 51% ownership of the applicant business. This proof must extend through all layers of any organizational structure, with each layer and its contributors meeting SBA requirements.

Because layered ownership can be complex, MySBA Certifications provides the Controlling Entity Dashboard—a digital profile for storing holding company data across any number of layers. This allows the applicant business to identify or establish its Controlling Entity in the system, assign a point of contact (POC) from that entity to submit documentation and verify majority ownership, and enables the POC to manage notifications from connected applicant businesses, update the subsidiary structure, and maintain contributor information.

Users & Roles in the Entity-Owned Process

The EO process begins with the applicant business in MySBA Certifications. Approved Controlling Entities can onboard, manage subsidiaries and contributors, and monitor progress. Below is a high-level overview of the roles:

  • Entity-Owned Applicant Businesses:

    • Request EO connection to an existing Controlling Entity

      • Note: You can complete and submit your application before the connection is approved. If rejected, your application returns for correction (e.g., connect to another Controlling Entity or reapply as non-EO).

    • Initiate a New Controlling Entity Request

      • Note: This is the only way a new Controlling Entity can be established in MySBA Certifications. Your application can proceed but won't be reviewed until the new Controlling Entity completes its portion. If denied, reconnect or restart.

  • Controlling Entities:

    • Complete the Controlling Entity Onboarding Application

    • Create and manage the subsidiary structure of the Controlling Entity

    • Create and manage Controlling Entity contributors

    • View and oversee all applicant business notifications in the MySBA Certifications process

    • Manage connection requests from applicant businesses

What’s to come in the handbook

In this handbook, you can expect in-depth guides on how to:

  1. Complete the onboarding process

  2. Review the firm notifications dashboard

  3. Accept or reject connection requests from applicant businesses

  4. Adding, editing, or deleting subsidiaries

  5. Adding, editing, or deleting contributors

 

For more information on the Entity-Owned process for applicant businesses in the MySBA Certifications applications process, please visit the Initiating Processes guide in Business Guides section of the Knowledge Base.

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