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

 

8a Program Eligibility – The $250,000 Adjusted Net Worth Requirement

Among the many 8a business development program eligibility requirements, the applicant for 8a Certification must have a personal adjusted net worth of less than $250,000 at the time of 8a Application Submission.

What is the definition of Adjusted Net Worth?

The algorithm used to determine Adjusted Net Worth for 8a Certification purposes is:

Adjusted Net Worth = Personal Assets – Personal Liabilities – [Equity in primary residence + value of ownership interest in applicant business + value of any IRA/401(k) or other retirement account that is subject to a penalty for early withdrawal]

If the applicant is married and the asset or liability is jointly held, you split the value 50/50. If the applicant is married and lives in a community property state, you only split assets and liabilities 50/50 if you have a transmutation or pre/post nuptial agreement that states otherwise.

How can I determine my Adjusted Worth?

You can easily determine your Adjusted Net Worth by using our Adjusted Net Worth Calculator.

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What is required to be submitted within the 8a Application to prove the applicant’s Adjusted Net Worth?

Each applicant, and their spouse, must submit a separate SBA Form 413, Personal Financial Statement. Along with the SBA Form 413 you must also submit statements for each asset or liability supporting the amounts reported. These statements cannot be any older than 30 days at the time of 8a Application submission.

Are there any ways to reduce an applicant’s Adjusted Net Worth below the $250,000 threshold?

For more information, contact us.

*Important* You cannot transfer an asset out of the applicant’s name within two years of the time your apply for 8a Certification for less than fair market value. Doing so will result in the full amount of the asset being re attributed back to the applicant.

8a Certification Advantages

8a certification is a valuable marketing vehicle for socially and economically disadvantaged small businesses to access the federal government marketplace. Initially, contracting under the 8a Program may seem more difficult than other methods. However, it is no more complicated than contracting under full and open competition through the sealed bid procurement process and it presents many advantages for both the government and the 8a contractor.

Advantages to the Government

A big advantage for government procurement personnel in selecting the 8a contracting method is that the agency does not have to solicit bids and may choose a specific 8a contractor to fulfill its requirements. For sole-source requirements under the competitive thresholds, the contracting agency can identify the 8a company to perform a contract by simply naming that company in an offering letter to the SBA. Of course this does not happen by itself. The 8a firm must actively self-market with the contracting agency or be introduced to the contractor through a referral. For competitive 8a requirements, the contracting agency does not have the same ability to choose a contractor, although the competition can be limited to eligible 8a companies within a certain geographic area or participation stage.

Another advantage for the government is that they can often get what they need faster by contracting though the 8a Program. This is because competitive requirements must be synopsized in FedBizOpps and the resulting solicitation must be open on the street for a minimum of 30 days. This process for full and open competition can take several months. 8a contracts have no synopsis requirements (except for competitive 8a contracts) and contracting agencies are not required to allow 8a firms 30 days to respond to the solicitation. Therefore 8a contracts can be finalized much faster.

Advantages to the 8a Contractor

The advantages to an 8a company are great. An 8a company can obtain federal contracts on a sole-source or limited competition basis much faster than in a full and open competition. For many small businesses, the costs of preparing proposals are very prohibitive. If the contract is a sole source, the 8a firm does not have to endure the costs associated with preparing a competitive proposal and participating in subsequent rounds of discussions with the contracting agency’s contracting officer.

Once the buying agencies are aware of the advantages of the 8a process and have a good experience with your 8a firm, they will most likely prefer to extend future contracts to you. The SBA plays a role in the beginning of the contracting process by verifying and approving the requirement for the 8a company. Once the requirement is in place, the 8a company and the federal agency deal directly with each other during negotiation of the contract and during performance of the contract.

Looking for help with Getting 8a Certified?

For clients who are too busy running their businesses to complete the application themselves, we understand you don’t have time to look over the 8a checklist and that you would rather have a group of trusted 8a program experts more involved in your application. Cloveer offers other services including an 8a Application Review, and for those who would like their entire 8a application completed and approved in record time, a full 8a Application Completion Service.

No matter which option you choose, Cloveer guarantees that no other company will work harder or faster to assist you in getting your business SBA 8a certified. We have been assisting clients to obtain their 8a certification and maintain their 8a program eligibility for over 10 years. As such, we know the SBA 8a program regulatory requirements, 8a standard operating procedures and Office of Hearings and Appeal cases that affect the 8a program better than 99.9% of anyone else out there.

At Cloveer, we believe in treating you the way we want to be treated. We go the extra mile to make sure your experience with our company is outstanding. Contact us today to discover what Cloveer can do for you.

A list of supporting documentation that must be submitted with your 8a Application

Here is a typical list of supporting documents that will need to be included within your 8(a) application:

  • Evidence of concerns registration in SAM (System for Award Management) and DSBS (Dynamic Small Business Search) systems
  • Personal federal tax returns for the last three filing years
  • Company federal tax returns for the last three filing years
  • A company balance sheet and income statement no older than 90 days and for the last three completed years
  • Personal resume
  • List of current and past federal and non-federal contracts and invoices within the last two completed fiscal years
  • Letters of reference from current and/or past clients
  • Current certificate of good standing
  • Stock certificates/Stock ledger (Corp)
  • Articles of Incorporation/Organization/Partnership Agreement including any foreign filings
  • Bylaws or Operating Agreements
  • Meeting minutes (Corp and LLC)
  • Buy/Sell or Voting Agreements
  • DBA or Fictitious Business Name Filing
  • Organization chart
  • Business bank signature card
  • business and special licenses
  • Business loan agreements
  • Brief history of the business
  • Lease agreements for business
  • Business insurance
  • Personal financial statement supporting statements (Checking, Savings, IRA w/terms, etc..)
  • Proof of Citizenship
  • Trust Agreements
  • Statement of Bonding Limit
  • Letter of No Objection

Keep in mind that each 8(a) Application is unique and document requirements vary based upon the entity type and number of applicants.

8a Certification: How to determine if your AGI is below the $250,000 threshold.

The $250,000 Threshold for Adjusted Gross Income (AGI)

Among the many 8(a) business development program eligibility requirements, the applicant for 8(a) Certification must have an average AGI over the past three taxes years of less than $250,000.

What is the definition of Adjusted Gross Income?

Adjusted gross income (AGI) is a tax term for an amount used in the calculation of an individual’s income tax liability. AGI is calculated by taking the applicants  gross income and subtracting their maximum allowable adjustments. AGI is the last number on the first page of the Form 1040.

How do I determine my Adjusted Gross Income for 8(a) Certification Purposes?

The easiest way to initially determine if you exceed the $250,000 threshold, averaged over the last three years is to add up the AGI number reported on the first page of your last three years of federal tax returns. If you add these three numbers, divide them by three and result in a number larger than $250,000 you must do further analysis. If the number is less than $250,000 you do not exceed the threshold regardless of what is discussed below.

If your resulting calculation shows more than $250,000, and you are a married, filing the taxes jointly, you should then separate the portion of any income reported on the tax return between the applicant and their spouse (e.g Line 7 (1040). Wages, salaries, tips, etc = $100,000 (Applicant’s portion, $40,000 –  Spouse’s portion, $60,000). Once you have separated out all of the income reported on the tax return between the applicant and their spouse again take the total for the last three years and divide them by three. If the resulting number is still larger than $2500,000 you must do further analysis. If the number is less than $250,000 you do not exceed the threshold regardless of what is discussed below.

One final analysis can be performed to see if you still exceed the $250,000 threshold. If the applicant business concern is an LLC or S-Corporation you may:

1. Deduct any income associated with the business concern that was reinvested into the business concern, less any distributions.

2. Deduct any income used to pay the LLC or S-Corporation Federal taxes within 12 months of the distribution of income.

Determining your AGI can be somewhat complex for 8(a) Certification purposes. Cloveer can help you to determine your AGI should you need further assistance. Please visit our website at www.cloveer.com for more information on 8(a), HUBZone and 8(m) Certification.

2 options to get your 8a application certified in the least amount of time possible

Option 28a Application Review  – $1,750.00

  • For those who wish to complete the application on their own we offer an 8a 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 38a Application Completion Service – $3,800.00

  • 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 12 years we’ve been assisting clients obtain 8a certification, and want us to put it to use for them.  If you opt for our 8a Application Completion Service, we will work one-on-one with you to ensure that your 8a Application is 100% complete and compliant so the SBA can review and accept it the first time.

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 to discover what Cloveer can do for you.

Where to find information on 8(a), HUBZone and Women-Owned Small Business Contracts

The most comprehensive source for information on awarded 8(a), HUBZone and Women-Owned Small Business Contracts is the Federal Procurement Data System (FPDS).

The FPDS contains historical information on contracts whose estimated value is $3,000 or more.

To gain access to this system you must register. Registration is free.

The FPDS allows you to drill down deep within the data inputted into the system and can provide you valuable information to help in your Federal Marketing efforts.

For example, you can perform the following searches within the system.

1. How much did a specific federal agency spend in the most recently government fiscal year or past years using 8(a), HUBZone or Women-Owned Small Business as the set-aside method.
2. How many 8(a) actions or contracts were awarded within a specific agency. You can also drill down to a specific department, office or region within the agency.
3. Detailed information on the awarded contract such as:

  • The solicitation number
  • Date signed or completed
  • Type of contract
  • NAICS code
  • Product or Service Description
  • Place of Performance (City, State or Zip Code)
  • Competition Information (8(a), HUBZone, Women-Owned, etc.)
  • Name of Contractor

These are just a few of the parameters that you can search on within the FPDS. All of this information can give you a leg up on your competition by allowing you to narrow your marketing efforts to ferderal clients who have purchased your products and services.

Download a report (PDF) that shows the amount spent and the number of contracts awarded with each federal agency in FY 2011.

Here is a summary:
8(a):
Number of Contracts: 117,343
Total Dollars Spent: $16,633,899,024.15

Women-Owned:
Number of Contracts: 318,937
Total Dollars Spent: $16,839,376,300.17

HUBZone:
Number of Contracts: 91,717
Total Dollars Spent: $10,001,960,445.11

For more information on 8(a) Certification, HUBzone Certification or Women-Owned Small Business Certification please call us at 813-333-5800 or visit www.cloveer.com.