How to Successfully Apply for SBA 8(a) BD Program Certification Anthony Ruiz District Director SBA...

How to Successfully Apply for SBA 8(a) BD Program

CertificationAnthony Ruiz

District Director

SBA San Antonio District Office

November 11, 2015

Washington Metropolitan Area District OfficeWashington Metropolitan Area District Office

The Federal Procurement Market

$500 Billion $500 Billion ++

per yearper year(2014)(2014)

U.S. Government:

The World’s Largest

Customer

Federal Federal Contracts =Contracts =

San Antonio District Office


Small Businesses: 23%

Small Business Market Segment

PROCUREMENT TARGETS:

$500 Billion $500 Billion per yearper year



Defined by number of firm’s employees

ORDefined by firm’s annual revenues

(Different for each industry, organized by NAICs code)

What is a Small Business?



SBA’s Resources & Programs

Contracting

Counseling

Capital/Small Business Financing

Exporting



What part does the SBA play in Contracting? 3 Roles

1. Keeping Agency Score:

SBA negotiates annual procurement goals with each Federal agency.

Ensures that the combined goals > 23% Reviews each agency’s results Issues Annual Small Business

Procurement Scorecards for each agency plus for the entire Federal Government.



What part does the SBA play in Contracting?

2. Counseling, Financing and Training:

SBA’s Resource & Contracting Partners offer Contracting counseling, training and matchmaking events throughout our region.

SBA’s Resource & Contracting Partners help business owners find and bid on procurement opportunities and assist to seek financing.

SBA WMADO provides compliance and business development assistance to its 8(a) firms.



What part does the SBA play in Contracting?

3. CertificationsSBA-Certified:

HUBZone Empowerment Contracting Program

8(a) Business Development Program

Self-Certified:

Small Disadvantaged Businesses (SDB)

Service Disabled Veteran-Owned Businesses

Women-Owned Small Businesses (WOSB)



Scope of SBA Certifications

SBA certifications only apply to Federal Agencies in the Executive

Branch.

State, County, and Municipal agencies as well as other branches of the U.S. Government may

have their own certification programs.

Certification by one of these authorities does not automatically confer certification by any others.



What does the SBA 8(a) Business Development Program offer?

Helps eligible small disadvantaged businesses grow and become sustainable:

Training in business, finance, management & marketing/sales

Opportunities to team with other companies

Support when competing for Federal contracts



Program participation: Up to 9 years

Program participation divided into 2 stages:Year 1 – 4 Developmental Year 5 - 9 Transitional

Must maintain eligibility and compliance throughout 8(a) BD Program participation.

The 8(a) BD Program



8(a) EligibilityUnited States citizen with documentary proof

Socially & economically disadvantaged individual--Documented

Own unconditionally at least 51% of concern--Documented

Control & Manage the firm on a full-time basis--Documented

Good character - not debarred, suspended, parole or probation

Registered in System Award Management (sam.gov) database

Two (2) years business history in primary industry classification, as shown with tax returns (may sometimes be waived)

Business must be small per SBA’s size standards--Documented



Who is Socially and Economically

Disadvantaged? Socially disadvantaged persons have been subjected to racial or ethnic prejudice or cultural bias because of their identities as members of groups.

People are economically disadvantaged if their ability to compete in the free enterprise system has been impaired due to diminished access to capital and credit.



In the absence of evidence to the contrary, individuals are presumed to be socially disadvantaged if they are a U.S. Citizen and a member of one of these groups:

African American Hispanic American (includes individuals

of Spanish & Portuguese descent) Asian Pacific American Subcontinent Asian American Native American



Persons not members of designated groups may be eligible if they can demonstrate their disadvantage:

The disadvantage may stem from color, ethnic origin, gender, physical handicap, long term environmental isolation, or other similar causes.

The applicant must have personally suffered this disadvantage in the United States.

The disadvantage must be substantial & chronic. The discrimination must have negatively impacted

on business advancement. Case must be established by a preponderance of

evidence.



Waiver of Two (2) Year Rule Requirement:

Applicant must demonstrate:

1. Management experience2. Technical expertise3. Adequate capital4. Successful performance 5. Ability to perform on a timely basis



8(a) Net Worth Criterion:After excluding the individual’s equity in the

firm, equity in the primary residence, & IRA, Applicant’s Net Worth may not exceed

$250,000.*Applicant’s Net Worth Calculation:less equity in primary residenceless equity in business less official retirement accountEquals Adjusted Net Worth (which must not exceed $250,000)

*When married, separate statements from each spouse to show each individual’s joint or community property shares and separate property.



Applicant’s Total Compensation Test

13 CFR124.104(c)(3)Cannot exceed average of $250,000 per

year adjusted gross income averaged over past 3 years upon application.

Upon 8(a) approval, cannot exceed $350,000, averaged over past 3 years.

Exception: LLC or Sub-S Corp: Evidence reinvested in the firm or paid taxes



Total Assets Test

13CFR124.104(c)(4)FMV of applicant’s individual total assets

(less only the IRA/401K) plus book value of applicant’s firm cannot exceed $4 million at time of application.

Not exceed $6 million after 8(a) approval



Potential for Success TestsPast Performance of Your BusinessExperience & Success in ContractingYour Company’s Financial ConditionYour Technical Knowledge and

Experience in Your Primary NAICS CodeYour Management ExperienceScope of Your Firm’s Available Financing Personnel, Facilities & Equipment



8(a) Application: Govt. Forms

1010, 8(a) Business Development Program Application (Section I: Business Profile, Sect. II: Mgmt. & Admin., & Sect. III: Supporting Documents (03/31/2014)

1010-IND, Individual Information (03/31/2014)

413, Personal Financial Statement (01/31/2018)



8(a) App. Govt. Forms (Cont’d)

912, Statement of Personal History (04/30/2016); Citizenship Proof if f.b.

1623, Certificate Regarding Debarment, Suspension & Other (10/88)

1790, Report Rep Used & Compensation Paid (10/31/2015)

4606-T, Request for Transcripts of Tax Returns-both co. & self (Rev. 08/2014)



Getting Started to Apply for 8(a)

Go to www.sba.gov, Apply for 8(a) Certification; follow Contracting Menu:

Getting Started; Contracting Support; Determining Business Size

About the 8(a) Business Development Program

Eligibility RequirementsHow to Apply



Getting Started: How to Apply

www.sba.gov:Follow the prep steps in the SBA websiteStudy the 8(a) Application ChecklistComplete the 8(a) application “draft copy”Gather all your required Company DocsComplete “draft” copy of Govt. FormsProofread 100% before applying on line.



8(a) App Checklist (Cont’d)

Who is required to submit all of this documentation? ALL “PRINCIPALS”:

Owners of 10% or more Directors and OfficersMembers or PartnersNOTE: All the above is subject to SBA’s request for additional information.



8(a) Application Checklist

REQUIRED DOCUMENTS TO PREPARE AND COLLECT

IN ADVANCE:

Review Handouts in Workshop



For More Information:For More Information:

Contact

Procurement Technical Assistance Center (PTAC),

San Antonio210-458-2458


How to Successfully Apply for SBA 8(a) BD Program Certification Anthony Ruiz District Director SBA...

Documents

Transcript of How to Successfully Apply for SBA 8(a) BD Program Certification Anthony Ruiz District Director SBA...