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8(A) Certification Business Blog

8a Application Avoid the Two Unfixable Errors

Sep 17 2020 11:18AM by ez8a

As consultants we get calls from people that say to us.  “I need immediate help my 8(a) application is in trouble!  Obtaining 8(a) is critical for my business, there is a major contract I can get if I am 8a!”  We then look into the SBA’s response for the application and many times there is no way to fix the application.   Below are the two areas that cannot be appealed to the OHA as they do not have jurisdiction over the denial.  The applicant does not meet the SBA’s standards for having “good moral character.” The applicant firm does not meet the SBA’s potential for success threshold. Good Moral Character - If any owner of the firm who possesses more than a 10 percent ownership stake is found not to have good moral character the firm will be declined.  This is different from the Social Disadvantage and Economic Disadvantage thresholds where it is only the 51% owner that is considered for those parts of the application process. Issues that can cause a denial for Good Character:  Adverse information regarding criminal conduct, Violations of any SBA regulations, Debarred or suspended firms, Debarred or suspended persons, Submission of false information during the application process or after approval, Lacks business integrity (i.e. any legal issues such as indictments, guilty pleas, convictions, judgments, settlements), Is currently incarcerated or on parole or probation (either pre-trial or following conviction for felony or any crime involving business integrity) Potential for Success – In general to demonstrate potential for success the firms must be in business in its primary industry classification for at least two full years (evidenced by tax returns) immediately prior to the date of its 8(a) application.  In addition the firm must also have other characteristics as well, currently profitable, a positive net worth, access to capital, technical knowledge in the industry of the primary owner, 51% owner must have licenses or certifications needed to run the business, full time devotion of the primary owner, and a federal market in which to serve with its products or services.  If the firm does not have two years in business then the firm must be able to demonstrate that the owner of the firms has substantial business management experience in the industry in which the firm is applying.  The firm also needs to show that it has been successful by having a substantial amount of revenue generally over $160,000 as well as being profitable.  When a firm needs a two year waiver in order to apply the SBA is more thorough in its analysis in its determination of potential for success.  Because these three items are not subject to OHA appeal it is very important that a firm meet the SBA’s thresholds in these items prior to submitting their 8(a) application.

SDVOSB Certification + GSA Schedule = Increased Sales

Sep 14 2020 6:17AM by ez8a

The biggest reason for the SDVOSB/GSA combination is to enhance your firm’s sales volume with the federal government.  A small percentage, 5%, of SDVOSB firms utilize this strategy, but for those firms the sales advantage has been dramatic.  See Table Below: Firm Type Total Sales Volume Number of Sales Average Sales per Firm SDVOSB 22,000,000,000 24,680 891,410 SDVOSB + GSA Schedule 2,124,000,000 1,247 1,703,287 Percentage   5% 191%   It is true that construction firms are not eligible for GSA Schedule contracts due to the nature and scope of their work.  However, this is only 2,611 of all SDVOSB firms, therefore the other 20,000 most likely can find a place on the GSA Schedule System. Another advantage of obtaining a GSA Schedule Contract is that puts the firm in a better position to obtain a position on GWACs (Government-wide Acquisition Contract) such as VETS IT contract when they are open.  Finally, most GSA Schedule holders have additional federal revenue sources other than their GSA Schedule Contract, so it is likely that the SDVOSB+GSA Schedule combination is providing those firms with 2x the federal sales revenue of their non-GSA Schedule holding peers. If you have obtained an SDVOSB Verification and are looking to increase your sales, a GSA Schedule maybe the right fit for your firm.

Is There Any Necessity Of Business Designation

Dec 6 2016 10:30AM by ez8a

There are lots of programs for helping various business groups to work from private entities and governments. The business registration procedure for minority, women, and service-disabled veterans does not vary from the ordinary process, which all businesses trail. You still have to register your business, get relevant certificates, permits, and licenses to legally work. Here are assets for your business to start. When the designations are not needed, applying for SDVOSB certificate can give a wealth of extra chance for your business both in the private and government sectors. Certain government treaties are reserved for businesses with these designations on the state and federal levels.                                      In calculation to the federal government, your state government provides a broad assortment of opportunities for small businesses to fight for government agreement. It is significant to note that this procedure is a long time investment. Supplies are very rigorous and must be met totally at the time of the application. You must start the application process as soon as possible! If you think you may want to be certified in the future, it is prudent that you create a folder when your company is juvenile and start gathering all the essential documents, such as your integration paperwork, for the application progression.   Service Disabled Veteran Owned Business (SDVOB) Eligibility   In order to be qualified for the Service-Disabled Veteran-Owned Small Business Concern Program (SDVOSBC), the Service-Disabled Veteran (SDV) must have a service associated disability that has been resolute by the Department of Veterans Affairs or Department of Defense. Your trade must be at least 51% possessed and monitored by an SDV. The SDV must hold the chief officer position in the SDVOSB Certification.   Woman Owned Small Business Eligibility   To be eligible, your business must be at least 51% owned and controlled by one or more than one woman. The women must be U.S. citizens. The business must be “small” in its primary industry in accordance with SBA’s size standards for that industry of WOSB Certification.   Minority Owned Business Eligibility   Some minority groups are supposed to be economically and socially underprivileged and can be eligible for the 8(a) program. These groups consist of African Americans, Native Americans, Hispanic Americans, Alaska Native Corporations, Native Hawaiian Organizations, Indian Tribes, and Community Development Corporations, Asian Pacific Americans and Subcontinent Asian Americans. People who are not members of one or more of these groups can be regarded as the 8(a) program, but they must give significant proof and certification that describes that they have been subjected to favoritism or bias and are economically underprivileged. In count to working with government agencies, you can enlist your business with non-government associations and certification agencies. Each certification body delivers dissimilar profits for those who succeed, including business fairs, networking opportunities, financing options, training programs, MBE Certification and more. For instance, the Minority Business Development Agency directs minority business proprietors to the National Minority Supplier Development Council where they can list their business as a licensed minority-owned business and taking benefit of the remuneration.

Some Essential Information On 8a Certification

Nov 23 2016 1:07PM by ez8a

8a Certification is the term used for communally or economically underprivileged businesses who have gone through the application procedure along with the General Services Administration (GSA) and been awarded a GSA schedule contract.  Once 8a certified, the 8a Business is then competent to take benefit of any number of contracts which the federal government has mandated can only be fulfilled by 8a businesses.  These commanded contracts are recognized as "Small Business Set Asides."  More distinctively, "8a Small Business Set Asides." The focus of the program is to provide business development support, such as mentoring, procurement assistance, business counseling, training, financial assistance, surety bonding and other management and technical assistance. The goal, however, is to prepare small disadvantaged firms for procurement and other business opportunities.   Who Qualifies for the Certificate?   • Must be a small business • Must be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States • Must demonstrate potential for success   How will you manage to earn the certificate?   The process for getting 8a Certification can be tedious and drawn out if not done correctly from the beginning.  One reason for this comes from the way the federal government works.  Just like any other business, the federal government would rather deal with people who are familiar with the application process than with people they are going to have to baby sit every step of the way. This process could and should have been significantly quicker if they had retained someone more familiar with the provedures from the beginning.

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