Sba 8a program length

Typically, change in ownership of an 8 a concern requires prior SBA consent, with a few exceptions. To facilitate minor changes in ownership, the final rule allows changes in ownership without prior SBA approval so long as the previous owner i. This effectively raises the trigger threshold for SBA consent from 10 percent in the previous rules to 20 percent. The final rule also addresses continued performance of contracts awarded to 8 a Participants that undergo a change in majority ownership.

Currently, the general rule is that an 8 a contract or an 8 a order where the underlying contract is not an 8 a contract must be performed by the 8 a Participant initially awarded the contract. Further, the new owner must have performed similar work to the work being performed under those contracts.

Second , SBA clarified that individuals responsible for management and daily business operations of more than one ANC or tribally owned 8 a Participants need not be devoted full time to each Participant. Fourth , SBA relaxed the prohibition on excessive withdrawals in the form of distributions for entity-owned 8 a Participants.

Under the final rule, however, these entities are now allowed to make distributions to the non-disadvantaged owners that exceed the excessive withdrawal threshold so long as that distribution represents a pro rata distribution to all shareholders of the entity.

Internet Address:. Kentucky District Office website. Eligible 8 a firms must meet the following qualifications: Any firm that participated in the 8 a Program between March 13, , and September 9, , has the option to extend its program participation for one year from the end of its program term; Firms that were terminated, early graduated, or voluntarily withdrew from the 8 a Program during this period are not eligible for the extension; and Firms admitted to the 8 a Program on or after September 10, , are not eligible for the extension.

Automatic Extensions: Firms participating in the 8 a Program on January 13, , will receive an automatic one-year program extension unless they decline it in writing. Firms that elect to extend their participation in the program will not be subject to a higher non-8 a business activity target BAT for the extension period. The same 50 percent BAT that applies to the ninth program year will apply to the extended program term. Graduated Firms : Firms that were participating in the 8 a Program as of March 13, , but graduated before January 13, , are eligible for program readmittance.

Firms seeking readmittance must notify SBA as soon as possible, but no later than March 15, This 8a qualification basically means the owner of the business should not have any criminal records, and should not have violated SBA terms before, should not be debarred or suspended, should not be incarcerated or otherwise related to guilty plea, conviction etc.

Also, knowingly submitting false information for 8a registration is prohibited. The concern must show potential for success.

This means your business should operate on the market for some time already namely: two years , and mostly in the industry where you would like to win 8a government contracts.

Obviously, your company must not be in debt and must have adequate capital and other capabilities personnel, equipment etc to process GSA contracts.

This is the required step in order to log in to the certify. Note that prior to the registration process you should preliminarily gather all necessary governing documents of your business and any other documents required for 8a business certification. This includes but is not limited to: financial statements, copies of signed Federal personal and business tax returns, bank statements, personal history statements, and any additional documents SBA deems necessary to measure your eligibility. When you are ready, check if your business is eligible for the 8a SBA Program with the above eligibility checklist, and then electronically submit your 8a certification application at certify.

Normally, 8a SBA certification process takes about days on average. However, if the application had any inconsistencies or errors, certification may take much longer. Once your business certification for the 8a Program completes, you can enjoy 8a Program benefits for nine years. However, you still need to confirm your disadvantaged status each year. Yes, sure. In fact, this happens pretty often. First of all, if your business does not qualify to 8a certification eligibility requirements your chances to become certified are thin.

Also, SBA 8a certification applications are denied due to incomplete forms, inaccuracies or inconsistencies in the submitted data or if false data are submitted. The trick is that SBA 8a program requirements are very detailed and require patience to fill in everything correctly. Plus, SBA scrutinizes your submission thoroughly, so making a mistake here and there is a cakewalk. Needless to say, the SBA 8a application is denied then.