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 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 exclude :
Equity interest of 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 soley 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 (2) areas :
1. Access to credit if the spouse is an officer or director of the company (guaranteed loans, lent money, provided financial support).
2. 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 the 8a 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 manufacture – 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.