8a Certification

Government Contract Lawyers & Consultants Helping Companies Increase Their Chances of SBA 8a Certification Application Approval.

Call 1 (866) 601-5518 for a Free Consultation.

8a certification services: if you a small disadvantage business or minority owned business seeking to take advantage of the lucrative possibilities in the SBA 8a Certification Program, Watson & Associates, LLC can help you through the maze and hurdles that most a 8a applications endure. The SBA disapproves approximately 64% of 8a certification applications.  Watson’s government contract attorneys and consultants increase your chances of approval the first time around. Our legal expertise and background in the 8a program has allowed us to challenge and succeed in the SBA’s adverse decisions. Compared to self-proclaimed 8a certification consultants, we provide value by applying our legal expertise during the application process. Our 8a services include:

• Thorough review and guidance throughout the application process
• Complete road-map with social and economic narratives
• Review and advice on business ownership and control matters
• Financial document assessment
• Net worth consulting
• A-Z preparation of your 8a application
• Legal representation in 8a terminations
• Appeal services if the SBA has unlawfully denied your application

Benefits of the Program

The following is a list of benefits of participating in the 8 (a) Business Development Program.

• Participants can receive sole-source contracts, up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing. While we help 8(a) firms build their competitive and institutional know-how, we also encourage you to participate in competitive acquisitions.
• 8(a) firms are also able to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract. Also, see the Mentor-Protégé Program for more information on allowing starting 8(a) companies to learn the ropes from other experienced 8(a) businesses.

Requirements and Goals of the 8(a) Business Development Program

The overall program goal is to graduate 8(a) firms that will go on to thrive in a competitive business environment. There are some requirements in place to help achieve this goal. 8a Ceritification Program goals require 8(a) firms to:

• Maintain a balance between their commercial and government business.
• Limit on the total dollar value of sole-source contracts that an individual participant can receive while in the program: $100 million or five times the value of its primary NAICS code.

To make sure 8(a) firms are on track to accomplish their goals and are following requirements, the SBA district offices monitor and measure the progress of participants through:

• Annual reviews
• Business planning
• Systematic evaluations

In addition, 8a certification  participants may take advantage of specialized business training, counseling, marketing assistance, and high-level executive development provided by the SBA and our resource partners. You can also be eligible for assistance in obtaining access to surplus government property and supplies, SBA-guaranteed loans, and bonding assistance for being involved in the program.

8a Certification Eligibility Requirements

To qualify for the 8a certification program, a small business must be owned and controlled by a socially and economically disadvantaged individual.

Under the Small Business Act, certain individuals are presumed socially disadvantaged: African-Americans, Hispanic Americans, Asian Pacific Americans, Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians), and Subcontinent Asian Americans. An individual who is not a member of one of the groups listed can be admitted to the program if he/she shows – through a “preponderance of the evidence” – that he/she is socially disadvantaged. For instance, an individual may show social disadvantage due to race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society; or other similar causes.

In addition, a socially disadvantaged individual must show economic disadvantage by submitting a narrative and personal financial documentation about one’s income, assets, and net worth.

Generally, successful applicants must also meet the following additional requirements

• The business must be small according to the Size standards for small business concerns;
• The business must demonstrate a potential for success (generally by being in business for, at least, two years);
• The business must be unconditionally owned and controlled by

1. by one or more disadvantaged individuals who
2. are US citizens and who
3. are of good character.;

A business can also qualify for the 8a Certification  program if the firm is owned by an Indian tribe, an Alaska Native Corporation (ANC), a Native-Hawaiian Organization (NHO), or a Community Development Corporation (CDC).

The specific requirements with further explanations are in 13 CFR 124 8(a) Business Development.

8a Business Development (BD) Certification Program Overview

SBA’s 8a Certification  program is a nine-year business development program, which provides specialized business training, counseling, marketing and technical assistance to small businesses certified for participation in the program.

The revisions to the 8(a) BD regulations are the first comprehensive overhaul of the program in more than ten years. The changes are:

• Both technical and substantive in nature;
• Made to ensure that the program benefits flow to the intended recipients; and
• To help to reduce potential fraud, waste and abuse.

Changes to 8(a) BD Regulations Will Strengthen the Program and Ensure That Its Benefits Flow to its Participants and Help Prevent Fraud, Waste and Abuse

The changed regulations allow owners of 8(a) firms called to active military status to elect to be suspended in order not to lose any of their 9-year term in the program.

For the first time, this rule adds objective criteria to determine economic disadvantage based on personal income ($250,000 for initial eligibility, $350,000 for continued eligibility) and total assets ($4 million for initial eligibility, $6 million continued eligibility).

The new rule allows an immediate family member of a current or former 8(a) firm to own an 8(a) firm where there are no or negligible connections between the two firms and the family member can demonstrate sufficient management and technical experience to independently operate the firm.

SBA has tightened requirements for joint ventures to ensure that non-disadvantaged firms do not unduly benefit from the 8(a) program.

• The 8(a) participant in a Mentor-Protégé agreement must perform 40% of the work of each 8(a) joint venture contract that it is awarded.
• A joint venture awarded an 8(a) contract cannot subcontract work to any non-8(a) joint venture partner, including a large business mentor
• Each 8(a) firm that performs an 8(a) contract through a joint venture must report to SBA how the performance of work requirements (i.e., that the joint venture performed at least 50% of the work of the contract and that the 8(a) participant to the joint venture performed at least 40% of the work done by the joint venture) were met on the contract.

The rule requires firms owned by tribes, Alaskan Native Corporations (ANC), Native Hawaiian Organizations (NHO) and Community Development Corporations (CDC) to report benefits flowing back to their respective communities.

Firms owned by a tribe, ANC, NHO or CDC may not receive a sole source 8(a) contract that is a follow-on contract to an 8(a) contract that was performed immediately previously by another participant (or former participant) owned by the same tribe/ANC/NHO/CDC.

SBA is now authorized to early graduate a firm that exceeds the size standard for its primary NAICS code, as adjusted, for three successive program years.

Choose lawyers that completely understand the commonly-missed issues during the 8a certification process

Although the SBA 8a Business Development Program allows for sole sourcing and other lucrative opportunities, the room for disaster lies in wait. We have actually seen the SBA decertify a legitimate small business just during the 8a application process. Let our lawyers help to minimize the fatal land mines that await you.

Call to speak with one of our 8a certification experts about your specific situation

If you need immediate help during the 8a certification process, contact the lawyers and consultants at Watson & Associates today. Call toll free 1-866-601-5518 for a free initial consultation.

Watson & Associates, LLC
925 South Niagara Street, Suite 600

Denver Colorado 80224

Tel: 720-941-7200

Toll Free: 1-866-601-5518.