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8(a) Business 8(a) Business Development (BD) ProgramDevelopment (BD) Program
Tips for SuccessTips for Success
Teresa TyhurstU.S. Small Business Administration
Office of Certification and Eligibility-San Francisco
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Topics
● Preparation of Your 8(a) Application
● Common Eligibility Concerns
● Compliance During Participation
● Future Changes
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Preparation of Your8(a) Application
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Submit a Complete Application
● ALL applications require supporting documents – refer to application’s document checklist
● Application and supporting documents must be submitted even if ANC, Indian Tribe, NHO, or CDC already owns another 8(a) Participant
● SBA will not obtain supporting documents from another 8(a) official file or application – it is the applicant’s responsibility to obtain and submit required documents
Preparation of Your 8(a) Application
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Submit a Complete Application (cont’d)
● Application must include governing documents for parent company – i.e. constitution, corporate bylaws, Articles of Incorporation
● Application must also include governing documents for holding company (if applicable) – i.e. Articles of Incorporation, corporate bylaws, Articles or Organization, operating agreement
Preparation of Your 8(a) Application
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Acquisitions
● If applicant firm was an acquisition, include documentation to show acquisition of applicant firm was an arm’s length transaction
● Factors to determine arm’s length transaction How was purchase price calculated? Was adequate consideration paid? Does consideration paid have a
reasonable relationship to an objective valuation or appraisal? What are payment terms if purchase was financed? Is payment
triggered by independent event not controlled by the noteholder? Compliance with payment terms of purchase/sale agreement
and/or promissory note
Preparation of Your 8(a) Application
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Primary NAICS Code
●If applicant firm is a new business, include information to substantiate primary NAICS code selected
●Has company sought work in the primary industry? Include copies of proposals, bids, etc.
●Does company have managers and employees who possess the necessary expertise in the primary industry? Include resumes
Preparation of Your 8(a) Application
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Principal Place of Business
● Principal place of business is the business location where the individuals who manage the company’s day-to-day operations spend most working hours and where top management’s business records are kept
● SBA servicing office is based on a company’s principal place of business If company’s principal place of business is in San Diego, should
not list alternate address in order to be serviced by another SBA office
Preparation of Your 8(a) Application
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Ownership Restriction
●Provide information regarding primary NAICS code and business activities of other companies owned by the parent that are current 8(a) Participants or that have left the program within the past two years
Preparation of Your 8(a) Application
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Common Eligibility Concerns
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Management of Daily Operations
● Applicant firm’s governing documents must clearly identify the individual responsible for the day-to-day management and operations
● Individual must manage on a full-time basis
● Individual responsible for the daily management and operations must be appointed SBA cannot determine eligibility if individual has not yet been
appointed
Common Eligibility Concerns
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Disclosures on SBA Form 912
● Form 912 is specific with respect to offenses that must be disclosed
● Offense must be disclosed even if conviction, guilty plea, no contest plea, placement in pretrial diversion, or placement on parole or probation occurred a long time ago
● Fingerprint cards may be required even if they were previously provided for another application
Common Eligibility Concerns
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Administrative Services Agreements
● Companies owned by entities (Indian Tribes, ANCs, Tribes, NHOs, CDCs) have an affiliation exception
● No affiliation based on common ownership and control
● No affiliation based on the performance of common administrative services as long as adequate payment is provided for such services
Common Eligibility Concerns
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Administrative Services Agreements (cont’d)
● Common administrative services can include: accounting, HR support, recruiting, and duties not related to contract performance or management
● Contract administration services that are administrative in nature (i.e. record retention, maintaining databases of awarded contracts, template development, invoice preparation) are shared common administrative services
Processing of Your 8(a) Application
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Administrative Services Agreements (cont’d)
● Contract administration services that include actual and direct day-do-day oversight and control of the performance of a contract (i.e. negotiating directly with the government agency regarding proposal terms, contract terms, scope and modifications, project scheduling, hiring/firing of employees) are not shared common administrative services
Processing of Your 8(a) Application
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Compliance During Participation
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Notify SBA of Changes
● Notify SBA regarding all changes of ownership and management
● SBA often finds out during the annual review process that changes have taken place
● If in doubt whether a change must be approved by SBA, contact your BOS to disclose
Compliance During Participation
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Future Changes
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Streamlining
● SBA is actively working on streamlining the application process, i.e. eliminating unnecessary documents
● What are your concerns regarding the current process?
● We welcome suggestions for the streamlining process
● We will ensure your input is forwarded to the AA/BD for further consideration
Future Changes
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Questions?
Office of Certification and Eligibility-San Francisco415-744-0328
Office of Certification and Eligibility-King of Prussia610-382-3062
8(a) HQ Office: [email protected]
SBA Answer Desk: [email protected]
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