The effective personal “adjusted gross income” (AGI) metric is probably the least known among applicants, and even many SBA analysts. This metric requires that the personal adjusted gross income for the applicant (i.e. not the applicant and his/her spouse) must average less then $200,000 per year for the two years immediately preceding the year in which you apply. What is this personal AGI metric? Before I answer this question, let me share with you whether or not it applies in your own situation. All you have to do is to look at line 37 of the IRS Form 1040, Individual Income Tax Return for each of the last two years, and if neither of these values exceeds $200,000, than you have nothing to fear from this test of your economic disadvantage. If you exceed the $200,000 level for any of the two years, but the average is below $200,000 per year, you also don’t have anything to worry about. However, in any situation when one or both years exceed the $200,000 per year limitation, you shall have to prove to the SBA that you are compliant with this test of your economic disadvantage. Want to know how to do this? As part of this service SBC will fully review your last two years of personal tax returns and perform a detailed analysis to determine if in fact you are below or above the regulatory limit. You will receive a detailed effective adjusted gross analysis that will fully explain and determine your adjusted gross income for 8(a) purposes.