When you apply for the 8(a) Program the SBA will ask if you have any immediate family members who have ownership in a business. Why? 13 C.F.R 121.103(f) defines that the SBA may find affiliation on an identity of interest between individuals or business, including family members.
Immediate family member is defined as father, mother, husband, brother, sister, grandfather, grandmother, grandson, grand-daughter, father-in-law, and mother-in-law.
If you do have an immediate family member that has ownership interest in any other business, and you conduct business with it, you must provide the following documentation to the SBA:
The above must be supplied if any immediate family member, any owner of more than 10%, any director, any officer has ownership in any other business entity.
- SBA Form 355 (listing each firm as an alleged affiliate);
- Interim year to date financial statements, as well as number of employees;
- Three most recently filed business tax returns, including all schedules, attachments, and proof of tax paid;
- If the firm is a corp, provide:
– Articles of incorporation and by-laws;
– The last two years of shareholder meeting minutes showing the election of the board of directors;
– The last two years of board of director meeting minutes showing the election of the officers;
– Stock certificates and ledger;
– Assumed/fictitious name registration, if dba name is used;
– Copies of cert of good standing if your firm is a foreign firm; and;
– Any buy/sell agreements, stock transfer agreements, etc.
If the firm is a LLC, provide:
– Articles of organization and operating agreement;
– Assumed/fictitious name registration, if a dba name is used;
– Certificate of good standing; and
– Any buy/sell agreements, stock transfer agreements, etc.If the firm is a sole prop, provide:
– Assumed/fictitious name registration.If the firm is a partnership, provide:
– Partnership agreement;
– Official filings with the state; and
– Assumed/fictitious name registration, if a dba name is used.
Why do they require this information?
The SBA requires the above information to determine if any affiliation exists between the 8(a) Applicant firm and any other business that your family member owns.
Need assistance with your 8(a) Application? With 20 years and over 3,000 successful applications under our belt, we can assure you that no matter which option you choose, Cloveer will work harder and faster to get your business SBA 8a certified. Contact us today at 813-333-5800 or visit our website at www.cloveer.com to discover what Cloveer can do for you.
