When you apply for the SBA 8(a) Program the SBA will require that you provide a detailed listing of your contracts* for the current year, through the most recently completed month, and at least the last two years along with 2 -3 letters of reference from current or past clients. You may also have to provide the SBA a copy of your client contracts for the last 12 calendar months.
*The term contract means contract, agreement, PO, etc.
The contract listing breakdown. You must detail the following to the SBA:
1. Contract Name. List the name of the contract, if applicable. (e.g., DISA Contract)
2. NAICS Code. List the six digit NAICS code which you are performing the work under. (e.g., 541511)
3. Award Date. List the date the contract was awarded (e.g., 01/01/2015)
4. Customer Name (Billable Client). List the name of the customer/client you are billing for the work being performed. (e.g. Lockheed Martin)
5. Description. Provide a brief description of the work being performed for the client. (e.g., Web based software application for DISA)
6. Total Dollar Value of Contract. List the total value of the contract. (e.g. $100,000 or TBD, ongoing if no total value)
7. Revenue earned from Client. List the amount of revenue your company has earned from this client in the current year to date and the last two fiscal years. (e.g., $53,275)
See below for a example.
You must also prepare another breakdown for the last 12 calendar months of your revenue too. See Below for an example.
The SBA will also use the above breakdown’s to look at your economic dependency over these periods of measurement to see if you are or have been earning more than than 70% of your revenue from one billable client. See our blog posting on economic dependency for more information on this topic.
As stated above the SBA will also require 2-3 letters of reference from current or past clients that speak to your performance on the work performed. The letters should be on the letter writers letterhead, provide a brief description of the work performed and whether it was performed successfully, and also contain the letter writers contact information and signature.
Copies of Contracts:
Although not specified by the SBA in their 8(a) Application checklist you should gather and store electronic copies of all contracts, agreements, PO’s, etc between your firm and the client for the last 12 months as you have reported within the last 12 months of contracts/revenue breakdown. Be sure that all documents are duly signed by all parties, if the SBA requests this information from you.
Need assistance with your 8(a) Application? With 15 years and over 2,000 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 visiting our website at cloveer.com to discover what Cloveer can do for you.