8A Rules

Third, under the previous rules, NCAs, tribes, NHOs and CDCs were not permitted to own 51% or more of a participant 8(a) who has the same primary NAICS code as another unit owned by the ANC/tribe/NHO/CDC that is a current paragraph 8(a) participant or that has participated in the program in the past two years. [15] If any of the participants in paragraph 8(a) of the Corporation receives approval from the SBA to amend its main NAICS code (p.B because much of its work is under a different code), the ANC/Tribe/NHO/CDC may immediately apply any of its majority-owned concerns to Program 8(a) under the current participant`s original main NAICS code. [16] In other words, these concerns no longer have to wait two years after the participant under paragraph 8(a) graduation for another of its majority-owned enterprises to have the same original primary NAICS code for the program. Some of the most notable changes to Program 8(a) relate to joint ventures under paragraph 8(a). First, the final rule implements the long-awaited merger of the Protected Mentor 8(a) program into the All Small Mentor Protected program) and eliminates the Protected Mentor 8(a) program. Mentor-Protected programs allow a protégé and a mentor with a mentor-protégé agreement approved by the SBA to jointly form a joint venture without the joint venture resulting in the connection of both partners. However, under the previous rule, protected mentor agreements could be submitted under both programs, resulting in inefficiencies and differences in the review. To eliminate this redundancy and confusion, the All Small Mentor Protégé program now governs all Mentor Protégé agreements. All current Protected Mentor 8(a) Agreements will continue to function as a Protected Mentor Agreement approved by the SBA under the terms of the All Small Mentor Protected Program, and they will continue to have the same remaining time in the Program as they would otherwise have in the Protected Mentor 8(a) Program. [1] The wording of section 8 was amended as part of the general overhaul of the civil order to make it easier to understand and to make the style and terminology consistent in all rules. These changes should only be stylistic. Note that the SBA will review your application for inconsistencies, violations of sensitive rules and submission of false information. The final rule also clarified certain eligibility requirements for single-source 8(a) prizes.

Specifically, the SBA has stated that it will determine a participant`s eligibility for the 8(a) Sole Source Awards at the time SBA accepts a requirement for the 8(a) program. [5] The rule also clarifies that if a company terminates the program before the single-source allocation actually takes place, the reward cannot be awarded. In addition, participants in paragraph 8(a) cannot receive single-source 8(a) prizes after reaching a certain dollar level of contracts awarded in dollars 8(a). However, under the current rules, the dollar level threshold differed depending on a company`s main NAICS code. The final rule simplifies this and provides that, regardless of a company`s main NAICS code, once the participant (other than a participant belonging to an Indian tribe, Alaska Native Corporation (ANC), Native Hawaiian Organizations (NHO) or Community Development Corporations (CDC)) receives a total of 8 (a) contracts valued at more than $100,000,000, can no longer receive contracts under paragraph 8(a) with a single source. [6] As we discussed recently, the U.S. Small Business Administration (SBA) has released a long-awaited rule that has made significant changes to many small business contracting programs and the rules that federal agencies must follow when awarding contracts with small businesses. These amendments came into force on November 16, 2020. You can read our general summary of the rule here, a detailed overview of the new treatment of joint ventures and senior subcontractors here, and the rule itself here. In this article, we`ll take a closer look at some of the notable changes to Program 8(a).

As a general rule, a change in ownership of an 8(a) company, with a few exceptions, requires the prior approval of the SBA. To facilitate minor changes in ownership, the final rule allows for changes in ownership without prior approval from the SBA, provided that the previous owner (i.e. the owner who changes the amount of his ownership interest) held less than 20% of the company before and after the transaction. This effectively increases the threshold for triggering SBA approval from 10% in previous rules to 20%. [10] This is a welcome change, as the BSO`s consent to changes in ownership can take a long time. Meeting SBA certification requirements is a major challenge. To succeed, it`s your job to be able to tell your story. If you cover the relevant facts and support the application with clear evidence such as affidavits, communications, etc., the BSO must seriously consider that evidence. Having your application for 8a certification approved by the SBA means that you are essentially treated as one of the elite categories of federal small business entrepreneurs. The core of the 8(a) program allows your business to reap the benefits of set-aside for small businesses and enjoy many legal benefits. Exceptional contracts are awarded (without actually bidding) and have a “fast track” to federal contracts.

(6) Effect of the lack of negation. A claim – which does not relate to the amount of damages – is allowed if addressable pleadings are required and the claim is not contested. If reactive advocacy is not required, a charge is considered dismissed or avoided. The benefit of going through the sometimes confusing SBA certification process can be worth it. Once you become an 8a certified company, you`ll have access to millions of dollars in 8a government federal contracts that you would never have had before. In addition, businesses that are not 8a certified for small businesses cannot affect contracts under the 8a.d. Expertise in the primary industry. The SBA will examine the technical and management experience of the owners and managers of the company to ensure that the people who control the company are able to manage it successfully. The SBA places the greatest emphasis on the specialised and managerial experience of socially and economically disadvantaged candidates.

The problem with claimants trying to get their 8a status is that they are not familiar with the depth of information and evidence supporting your claims. The history and facts of each individual to meet the 8a requirements of the SBA are different. Knowing how to assemble the application package is the key to certification 8a. (2) Alternative statements of an action or defense. A party may, alternatively or hypothetically, make 2 or more statements of a claim or defense, either in a single charge or defense, or in separate charges. If a party makes alternative statements, the brief is sufficient if one of them is sufficient. BE PREPARED to submit BUSINESS AND PERSONAL INFORMATION e. Finance. The SBA assesses the financial position of the enterprise by reviewing current and current financial statements, including the balance sheet, income statement (sometimes referred to as the “income statement”), aging liabilities and aging receivables. The SBA will also take into account the company`s access to future loans and capital. In other words, the SBA will ask questions about the company`s loans, lines of credit, cash reserves and other financial assets. The SBA understands how difficult it is for disadvantaged businesses to access credit and capital, but the SBA always wants to evaluate all the resources at your disposal to ensure the long-term success and viability of your business.

INVEST IN A PROFESSIONAL WHO UNDERSTANDS THE PROGRAM AND THE RULES – REDUCE THE LIKELIHOOD OF REJECTION THE FIRST TIME According to the SBA, “the applicant company must have the ability or be able to demonstrate that it is able to meet the personnel, facilities, equipment and any other requirements necessary for the performance of the contracts, in a timely manner when admitted to the 8(a) program. In other words, the SBA wants to know that your company now has enough resources – or the ability to find and acquire enough resources later – to survive a 9-year term in Program 8(a). The SBA will only enroll your business in Program 8(a) early if you have sufficient resources to handle an influx of new government procurement opportunities. In this section of your waiver request, the duration of which varies depending on the number and type of resources your business has, you provide the SBA with a detailed statement of all the significant resources your company now has to ensure its future success under Program 8(a). In terms of staff, describe your current employees and the specific skills and abilities they bring to your company, and include resumes if possible. Describe your office or facility, even if you operate a home-based business. Incorporate the positive characteristics of your facilities, such as the . B low overhead costs or geographical proximity to your customers. Make a list of the devices your company owns or leases, and don`t forget about assets such as company cars, laptops or desktops, printers, fax machines, phone systems, etc. Explain how the resources you currently have are sufficient for the day-to-day operations of your business. In addition to the resources you already have in your possession, explain well how you would get additional resources in case you suddenly needed to do so in response to a new federal contract opportunity.

Describe how you would grow your business and/or employees to cope with such a new opportunity. Explain to the SBA how you would fund the acquisition of new resources, such as. B hiring new employees, or buying or leasing more equipment. .