Now that you are 8(a) certified, there is one last hurdle to get over before you can begin using your 8(a) certification, and that is your 1010c business plan.
Not a normal business plan, the 1010c deals with the firm’s developmental objectives while in the 8(a) program. It is not a standard business plan used to obtain debt financing or to raise other forms of capital. The SBA retains this business plan and if the developmental goals are deemed to have been met in the 1010c business plan, a firm can be early graduated from the 8(a) program. It is, therefore, important that certain elements about growth objectives and capital requirements be met within the business plan as well as having the business plan be consistent with other information provided to the SBA during the 8(a) application process.
The business plan has two major components. The narrative portion comprised of 52 questions that must be answered regarding your business. Response times to the questions vary on a question-by-question basis from 20 minutes to a few hours depending upon the question and its relevancy to the firm. The other portion that is contained within the business plan, as questions #45 & #46, requires detailed financial projections. Therefore, the entire business plan will take a consultant familiar with the 1010c approximately 30- 50 hours to complete and an individual starting from scratch approximately 100 hours, and in almost all cases the consultant’s work product will be of significantly higher quality.
A 1010c business plan we produce is tailored to the individual client. The proforma and financial projections are prepared by our on-staff CPA. The advantage of this is that our 1010c is very thorough and compiled with the objective of showing the SBA you are taking your 8(a) certification seriously. If the firm later becomes threatened with early graduation, your 1010c becomes either your best defense or very detrimental to your continued certification.
Time – Having the 1010c completed before your initial meeting with your SBA representative in most cases will decrease the time delay having your certification become active by 1- 3 months.
8(a) Objectives – a professional completing your 1010c will make sure your business objectives and goals are formulated to the SBA to provide additional protection from early graduation.