In most cases the answer is no.
The woman needs to have the managerial and educational experience needed to show she has the capability of running the firm. The woman owner does not necessarily have to hold a license or certification or have technical experience in the industry to show the experience needed to run the firm. However, if a man possesses these skills or required licensees and has an equity interest in the firm then a control issue will most likely found to be present.
The ownership must not be subject to any conditions, agreements or arrangements that cause or potentially cause the ownership benefit to go to another.
So long as the stock included in the seller-financed transactions does not affect the unconditional nature of the ownership, if the terms follow normal commercial practices and the owner retains control absent violations of the terms.
A woman is presumed economically disadvantaged if she a) has a personal net worth of less than $750,000, b) her adjusted gross income AGI for the last 3 years does not exceed $350,000, and c) the fair market value of all her assets does not exceed $6,000,000.
a) Net worth $750,000 excludes:
Equity interest in the primary residence
Funds invested in IRA or other retirement accounts that are unavailable until retirement age without significant penalty
Your ownership in the ED/WOSB
b) AGI $350,000 exclude:
Any income received by your ED/WOSB that is an S corporation, LLC, etc. if you can provide documentation that the funds were reinvested in the ED/WOSB or the distribution was solely for the purpose of paying taxes arising from the normal course of business operations
c) Fair Market Value of Assets $6,000,000 exclude:
Only your IRA or other official retirement accounts if they are unavailable until retirement age without a significant penalty being rendered
Yes – the SBA will review the spouse’s financial situation to explore the following two areas:
1. Access to credit if the spouse is an officer or director of the company (guaranteed loans, lent money, provided financial support)
2. A similar line of business, share employees, similar name, websites or equipment – if the spouse is in a similar business, the SBA can also include the spouse’s financial situation
No - unlike 8(a) certification, the Joint Venture Agreement does not have to be approved by the SBA.
ED/WOSB must be the managing venture in the joint venture.
ED/WOSB must not make less than 51% of the profits.
ED/WOSB must retain the final original records upon contract completion.
Service Contracts – at least 50%
Supply Contracts (if you are the manufacturer) – at least 50%
General Construction – at least 15%
Specialty Construction – at least 25%
Reseller who is not a manufacturer – no requirement
Most often at the ED/WOSB’s offices.
A protest allegation from an interested third party during the course of a bid review/submittal.
Webinars
Title:
SBA 8(a) Business Development Webinar
Description:
This webinar will go over who is eligible for the 8(a) program, the benefits of the program, as well as some of the secrets we have found that turn ordinary firms into top federal contractors.
Date:
Wednesday February 2nd 2022
Time:
2:00 PM EST
Duration:
45-50 minutes
You can register via this online form or give us a call and we can take down your information and have a link for the webinar emailed to you. Call 859-442-3300 and ask for Heidi
The 8(a) Certification is widely regarded as the most transformative certification a business can possess. Routinely businesses entering the program start with little to no federal sales experience and a few years into the program are selling millions of dollars’ worth. Like every other good deal there is a catch. The SBA has a very rigorous application process that according to the SBA’ historical averages only has a 25% approval rate, firms still know best practices for taking advantage of this program, and the program duration for its participants is only nine years.
This webinar is designed for both individuals that are totally new to hearing about the 8(a) program, but goes into enough detail where someone that has prior knowledge about 8(a) through federal contracting can still learn many of the intricacies of the program. If you have interest in the 8(a) program and would like to bring yourself up to speed this is a recommended webinar for you.
Account Manager
Joined ez8a in 2020 and has been consulting clients and hosting webinars due to her vast knowledge of certification qualifications. Emily currently works with our clients to uncover how to best position their company within the government contracting space, offering guidance and engagement with ez8a. Emily's expertise will help you determine what you qualify for and explain how that can benefit your small business.
