8(a) Certification: Family members with ownership in another business. What do I need to know and provide?

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.

Tip: They do not ask this question upfront. To alleviate any questions by the SBA during the review process you should provide a signed and dated certification that you or any immediate family members do not have ownership in any other business during the application submission process, if this is the case.

If you do have an immediate family member that has ownership interest in any other business 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.

  1. SBA Form 355 (listing each firm as an alleged affiliate);
  2. Interim year to date financial statements, as well as number of employees;
  3. Three most recently filed business tax returns, including all schedules, attachments, and proof of tax paid;
  4. 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 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 www.cloveer.com to discover what Cloveer can do for you.

 

 

2 Year Waiver Guide; How to prepare the 2 year waiver for your 8(a) Application

Who needs to provide a Length of Time in Business Waiver/Two Year Waiver?

Your firm must demonstrate potential for success by showing two years in business. Please note that if the business concern has not yet generated revenues you will be unable to waive the two-year rule.

If the business has not generated revenues for the preceding two years, as verified by sufficient revenues reported on business tax returns, you will need to request the Length of Time in Business Waiver/ Two Year Waiver.

Proof of two years operation in the firm’s primary industry as verified by sufficient revenues reported in business tax returns for the two previous tax years, NOT the business concerns anniversary date.

What are the SBA requirements to be able to apply for the 8(a) Program using the Length of Time in Business Waiver/Two Year Waiver?

  1. The 8(a) applicant(s) must possess substantial business managerial experience.
  2. The business concern must have demonstrated that it has the technical expertise it will need to carry out its business plan with substantial likelihood for success.
  3. The business concern must have adequate capital to sustain its operations and carry out its business plan.
  4. The business concern must have a record of successful performance on contracts in its primary NAICS code.
  5. The business concern must have (or can quickly obtain) the personnel, facilities, equipment, and other resources it needs to perform any 8(a) contracts it might be awarded.

Our 2 year waiver guide contains very detailed instructions on how to satisfy each of the 5 conditions including what you should detail in your narrative for each condition as well as the exact supporting documents you must provide to the SBA to support your narrative. Additionally, a detailed example narrative write-up for each condition is provided in our guide.

Our 2017 SBA 2 Year Waiver Guide will assist in the preparation and 100% completion of the 2 Year Waiver for your SBA 8(a) Application. This downloadable guide is $150.00. Click on the Buy Now button below to purchase the guide and download now. This guide will not only show you how to properly prepare the 2 Year Waiver but will save you countless hours of trying to figure out how to properly complete the 2 Year Waiver and possible endless back and forth or long delays of the processing of your 8(a) application by the SBA.

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8(a) Application – New Procedure for Submitting your 8(a) Application

The SBA has recently changed its method for submitting your 8(a) Application supporting documents.

On August 24, 2016, the SBA updated Title 13 of the Code of Federal Regulations (C.F.R.) Part 124. Among one of the updates, the SBA included a requirement that all 8(a) Applications along with supporting documentation must now be filed electronically.

Because of this change, the SBA now (as of February 10, 2017) requires that you submit your entire 8(a) Application electronically instead of mailing the completed 8(a) Application and supporting documentation to them. Please note, this has been noted as an interim process therefore please stay tuned to our blog for further updates to the submission process.

(You can download the Interim Process Guide by visiting https://certify.sba.gov/8a-docs). Please review the process in detail before submitting your 8(a) Application to the SBA. Here are the basic steps from the guide:

  1. You will still need to complete your 8(a) Application forms within the BDMIS system or via your SBA GLS account.
  2. To upload your supporting documents to the SBA, you will now need to establish an account with certify.sba.gov. Once you have established an account with certify.sba.gov and have selected the option for 8(a) Document upload under the Programs option within this system:

You must use the following naming convention when saving and uploading your 8(a) documents to the SBA: FIRM NAME_DUNS NUMBER_TYPE OF FILE.PDF.

For example, if you are uploading your 2015 personal tax returns, the PDF file should be named: ABC LLC_123456789_2015 Personal Federal Tax Return.PDF

All files must be uploaded as separate documents.

  1. You will also need to upload your BDMIS Application completed through your SBA GLS account with all executed signature pages.
  2. For all further instructions, please review the guide mentioned above.

Tips to select the right consultant to prepare your 8a, HUBZone or VetBiz Application.

1. Pick up the phone. Call them and speak to the actual person who will be preparing your application. 

You should be able to call them and speak directly to the individual(s) who will be responsible for preparing your application. At Cloveer, you can call and speak to the employee who will be responsible for preparing your application. They will answer any of your questions and let you know whether or not you are eligible to become certified into one of these programs at no cost. Call us at 813-333-5800 to get your questions answered.

2. Don’t choose your consultant solely on their price for services.

The old adage is true. You get what you pay for. If it looks to good too be true, it usually is.

3. Stay away from any consultant that offers you any type of guarantee.

The FAR prohibits any federal consultant to base any fee for their services contingent on certification.

4. Ask as many questions up front as possible. See if they actually know the rules and regulations of the program you want to get certified into. They should be able to answer your eligibility questions quickly and correctly.

Cloveer pre-qualifies all of its potential clients to make sure they meet all of the regulatory requirements.

5. Check the consultants Better Business Bureau report.

If they don’t have a profile established with the BBB, or have negative feedback, this is a sign of potential problems. Cloveer is an A+ Rated BBB business with zero complaints.

6. Ask them for references you can personally speak to and look for a recent track record of success.

Cloveer has real references that are published on our website that you can call and speak to.

7. Look at their website to see if they provide more than just sales information.

Cloveer.com has an extensive FAQ section along with a comprehensive blog on getting certified. We want you to understand as much as possible before making a decision on whether or not to pursue certification.

8.  Make sure that the agreement provided for services to be rendered covers everything.

All services provided by Cloveer are on a fixed price basis so there will be no hidden charges.

For More information on getting your 8a Certified, HUBZone Certified or VETBiz Certified, call us at 813-333-5800 or visit www.cloveer.com

 

8(a) Application – Contracts, Invoices and Letters of Reference – What you need to know and provide

Among the many items that are required to be submitted to the SBA, with your 8(a) Application, you will need to supply a listing of client work performed, copies of contracts/agreements, invoices and letters of reference.

These items will allow the SBA to determine:
1. If you have any economic dependence issues.
2. That your primary NAICS code identified within your 8(a) application submission is correct.3. Who is signing or has signed the contracts/agreements within your organization to determine if any unconditional control issues may exist or if there is someone else that, not identified, may be a considered a key officer/employee.
4. If you are performing on these contracts to the satisfaction of your clients.

Client Listings Worksheet:
You must supply the SBA with a detailed listings of all work performed by your business for the following periods:
a. Beginning of current year through the most recently completed month end.
b. The last three years.
c. Breakdown of all contracts/revenues earned within the last 12 months.

The client listings worksheet provided to the SBA should contain the following information:
a. NAICS Code for work performed
b. Award date of contract/agreement
c. Customer name (billable client)d. Brief description of work performed for client.
e.Total dollar value of contract/agreement
f. Revenue earned in each period specified above. You should separate out the revenue for the current year, and each of the last three years individually for each client.

Contracts/Agreements:
You must supply the SBA with a copy of all contracts/agreements and invoices earned within the last 12 months. Make sure that all contracts are signed by all parties and contain all pages.

The SBA will examine these contracts to determine if the primary NAICS code indicated is correct and also to see if someone other than the applicant is signing and executing these contracts on behalf of your company.

Invoices:
You must supply the SBA with all invoices, for work performed, that matches the totals within your client listings worksheet.

These invoices should show the work performed and be descriptive enough to give the SBA reviewer an idea of the type of work performed, that was billed.

Letters of Reference:
You must supply the SBA with at least 2-3 letters of reference from clients listed within your client listings worksheet. These letters of reference should generally speak to the type of work performed, how well it was performed and must be provided on the letter writers letterhead, signed and contain their contact information.

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 www.cloveer.com to discover what Cloveer can do for you. We also offer these options for further assistance in completing your 8(a) Application.

Option 18(a) Application Review

  • For those who wish to complete the application on their own we offer an 8(a) Application Review service.  Here, one of our 8a program experts will review your entire application, checking it for missing documents and potential eligibility issues.  We will then advise you as to how best to modify your application to ensure it will be approved an SBA reviewer.

Option 28a Application Completion Service

  • The majority of our clients however, prefer a little more of a hands-on approach.  They recognize the expertise we have accumulated in the over 14 years we’ve been assisting clients obtain 8(a) certification, and want us to put it to use for them.  If you opt for our 8(a) Application Completion Service, we will work one-on-one with you to ensure that your 8(a) Application is 100% complete and compliant so the SBA can review and accept it the first time.

What role can a consultant play in your SBA 8(a) Application

Hiring a reputable consultant to assist in the preparation of your 8(a) Application can be very important. Most self prepared 8(a) Application are rejected outright or send back multiple times for deficiencies or inconsistencies. In fact “Only 2 out every 10 self prepared 8(a) Applications are approved by the SBA“.

Hiring and investing in a reputable consultant can dramatically increase your chances to achieve successful 8(a) Certification and decrease the time it takes to get 8(a) Certified. A consultant that does not have the experience or proven track record may hurt your chances. The old adage of “You Get What You Pay For” is important. If you believe that you can pay your consultant a few hundred dollars to prepare a successful 8(a) Application you will most likely “Get What You Pay For“. It takes anywhere between 40-80 hours’ worth or work typically to properly review and prepare the 8(a) Application with work on both sides. An 8(a) Application can be several hundred to over a thousand pages in length and is not just a bunch of forms to fill out.

A reputable 8(a) Consultant should perform a free pre-qualifying interview to determine your current state of 8(a) Program eligibility before they enter into any agreement with you. As a result of this pre-qualifying interview they should let you know if your chance of qualifying or not. If you don’t qualify for the 8(a) Program they should let you know why and how to get around these issues without breaking any of the rules.

When you hire any consultant, accountant or attorney to assist with your 8(a) Application they are required to report the SBA that they assisted you and what fees you paid them to assist you. They must also provide a copy of any agreement between the client and the them for review by the SBA.
If you choose to enter into an agreement with a consultant you should make sure:

1. The consultant must have extensive experience in preparing 8(a) Applications that have resulted in successful 8(a) Certification by the SBA and can provide real references for you to speak to directly.

2. The consultant must thoroughly understand the current SBA 8(a) regulations and Office of Hearings and Appeals (OHA) cases that might impact your 8(a) Application.

3. The consultant you speak to initially should be the person who will assist in your 8(a) Application and not be passed off to some junior analyst with limited experience.

4. The consultant should also have detailed knowledge of Federal procurement. For example did they previously work for an 8(a) Certified company or work in the federal market space as a contractor.

5. The consultant should provide you with very specific guidance and clear recommendations to you while preparing your 8(a) Application with clear answers to your questions with no double-talk.

6. No consultant should offer a guarantee that your application will accepted by the SBA as the SBA is the final determiner in whether you get certified. It is actually a violation of the SBA rules for any consultant to guarantee that your application will approved by SBA.

7. The consultant agreement should ensure that all of your personal information is protected properly and not shared with anyone other than you and the consultant.

8. The consultant should assist you after the 8(a) Application is submitted to the SBA should the SBA ask for additional information.

Cloveer employees live and breathe 8(a) Certification. When you hire Cloveer to prepare your 8(a) Application you will working directly with Rick Otero, our President/CEO who has 15 years to experience with proven results.

Rick keeps up to date on all of the latest daily SBA 8(a) Program changes and has a detailed understanding of the current SBA 8(a) regulations and the latest SBA OHA cases on 8(a) Certification.

Cloveer has a very strong success rate. We maintain a rate over 99% for clients we pre-qualify and have assisted thousands of small businesses to achieve and maintain their 8(a) Program Certification.

Rick worked in his family owned 8(a) Certified business, RJO Enterprises, Inc.. This business was one of the most successful 8(a) Certified companies in the 8(a) Program. In fact this business was recognized by INC. Magazine for five consecutive years as one of the country’s most successful 8(a), high-tech, information technology and electronics concerns.

Cloveer will pre-qualify you for FREE as we don’t want to waste your time or investment if you do not qualify. When you ask Rick a question you will get an honest answer with no double-talk. Even if Rick finds that you do not currently qualify he will identify the workarounds to your specific issues, if possible, so you can apply down the road.

All information provided to Cloveer is protected and will be secure and will never be shared with anyone.

Finally, our Full 8(a) Application Service is turnkey and once we prepare and you submit your 8(a) Application we will be there for you until with full support, at no additional fee, should the SBA ask for additional information.

Give us a call at 813-333-5800 to speak with Rick or visit us at www.cloveer.com for a wealth of information on the 8(a) Program.

List of Items needed to complete the SBA Form 413 (Personal Financial Statement)

The following is a detailed list of items needed to complete the SBA Form 413 (Personal Financial Statement.

Please note, this list may or may not cover every personal asset or liability you may have and should serve as only a general list.

All statements mentioned below must be no older than 30 days old when submitted to the SBA, contain all pages of the statement, list all of the account holder(s) names, account numbers, type(s) of account and account balances.

Assets:
1. Checking account statement.
2. Savings account statement.
3. IRA and any other retirement account statements along with a complete copy of the written terms and conditions for each retirement account held.
4. Copies of any shareholder/member promissory notes or personal loans owed to you.
5. Life insurance statement for any life insurance account that has a cash surrender value only, showing the cash surrender value, the face amount of the policy, name of insurance company and any beneficiaries.
6. Stocks, mutual funds and savings bonds statements. You will need to identify the number of shares owned, name of security, cost, market value quotation/exchange and date of statement.
7. Current balance sheet and income statement for the applicant business.
8. Type of real estate/property owned (e.g., primary residence, investment, vacation property, etc) along with address, date purchased, original cost, present market value (see #10), full name and address of mortgage holder, mortgage account number, mortgage balance (see #5 under liabilities), amount of payment and status of mortgage (e.g. current, delinquent, etc.)
9. Deed for each property owned.
10. Fair market valuation for each property owned.
11. Homeowners insurance policy for each property owned.
12. KBB value for each automobile owned
13. Title or registration for each automobile owned
14. A estimate of the value of your “Other Personal Property” along with a detailed listings of the contents.
15. Other Assets (Examples below):
– Other businesses owned (Current balance sheet and income statement)
– Boats (NADA value)
– Motorcycles (NADA value)

Liabilities:
1. Notes payable to banks such as HELOC, 2nd mortgage, Student loans, personal loans, shareholder/member loans, etc. (Full copy of original loan agreement along with a current statement). Additionally, you will need to identify the original balance for each note, the current balance, payment amount, frequency, how secured and whom the note is with.
2. Automobile loan statement(s)
3. Credit card statement(s). Include even if $0 balance, when submitted.
4. Statement of loan balance for any loan taken on life insurance.
5. Mortgage statement for each property owned.
6. If past taxes are owed, a current balance statement showing balance owed. Additionally, you will need to identify the type of taxes owed, to whom payable, when due and amount.
7. Any other liabilities such as boat, motorcycle, loan statement(s), etc.

Source of Income:
1. An amount for your current annual salary
2. An amount for any Net Investment income you may earn in the current year.
3. An amount for any real estate income you may earn on properties you own.
4. An amount for any any other income such as VA disability income, distributions, dividends or bonuses, etc.

Need assistance with your 8(a) Application? With 14 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 www.cloveer.com to discover what Cloveer can do for you. We also offer these options for further assistance in completing your 8(a) Application.

Option 18(a) Application Review
  • For those who wish to complete the application on their own we offer an 8(a) Application Review service.  Here, one of our 8a program experts will review your entire application, checking it for missing documents and potential eligibility issues.  We will then advise you as to how best to modify your application to ensure it will be approved an SBA reviewer.

Option 28a Application Completion Service

  • The majority of our clients however, prefer a little more of a hands-on approach.  They recognize the expertise we have accumulated in the over 14 years we’ve been assisting clients obtain 8(a) certification, and want us to put it to use for them.  If you opt for our 8(a) Application Completion Service, we will work one-on-one with you to ensure that your 8(a) Application is 100% complete and compliant so the SBA can review and accept it the first time.