The overall length of this section will vary depending upon how much contract experience your company possesses. You can also provide (as attachments) full copies of signed, executed contracts and/or reference letters from satisfied clients as examples of your previous work. Many hardworking business owners are modest and often embarrassed about "selling themselves," but in this case that is exactly what they are looking for. Year 1 – $250,000 in sales owner 1 (40%), owner 2 (30%), owner 3 (30%) – owner 1 is president and signs all contracts, is highest paid, and is in control of the business decisions. In other words, the SBA wants to know that your company possesses enough resources now—or possesses the ability to locate and acquire enough resources later—to survive a 9-year-long tenure in the 8(a) program. The applicant firm must have a record of successful performance on contracts from governmental or non-governmental sources in its primary industry category. In order to demonstrate that the company possesses the required "potential for success", an applicant firm must meet several basic criteria: a. At least 1 tax return with revenue and a profit on that return. List the equipment your company owns or leases, and don't forget assets such as company cars, laptops or desktop computers, printers, fax machines, telephone systems, etc.
A two-year waiver is not required because the firm has been in existence for more than two-years. 8a certification benefits Has the candidate concern created business in the essential NAICS code for the previous two-years?
If your firm has not been in business in the industry for which you’re applying for at least two full years immediately prior to the date of its 8(a) application, you must request a waiver of the “two year in business” requirement. Yes, we look at the revenues (there is no set amount because it depends on the industry) but we also look at where/who the contracts / the revenues are coming from (more than 1 or 2 sources). According to the SBA, to be admitted into the 8(a) program early, "the applicant firm must have adequate capital to sustain its operations and carry out its business plan." Your brother does not need to give you any funds at this time; his letter is documentation of cash that is available to your company. The Small Business Administration, unfortunately, does not provide extensive written guidance regarding how a length of time in business waiver request should be written. PROFIT is one that is commonly overlooked. Tell the SBA what your primary North American Industrial Classification System (NAICS) code is if you know it. Although the SBA understands that your company is applying for 8(a) status because it is small and disadvantaged, it will not grant you a waiver of the length of time in business rule unless you can demonstrate relative financial stability now. Many new firms are interested in joining the 8a Certification program in order to take advantage of Federal Sole Source and Set-aside Contracts. The SBA allows you to conduct business within any NAICS code; however, when evaluating your company for a length of time in business waiver, the SBA will only assess your company's performance within its primary NAICS code. 8a certification checklist Now and again it very well may be indistinct concerning whether you have to finish a two-year waiver. Sometimes it can be unclear as to whether or not you need to complete a two-year waiver. Address any and all knowledge, skills, and abilities you possess in the areas of leadership and management; fiscal responsibility and budgeting; supervision of staff and human resources; scheduling, execution and management of projects; customer relationship building and customer service; sales, marketing, and business development; inventory control and logistics; and any related disciplines. In addition, the SBA may require proof that the government previously procured and is likely to procure the types of products or services offered by your business. Publications: If you have ever been published in a business magazine, an industry trade group publication, a prominent online blog or any other significant public forum, mention this experience because it shows that you are a respected expert in your field. The Two Year Waiver - Profitability I am asked every day about all the aspects of a two year waiver and there are a lot. Cash flow is often the most difficult management challenge for any small business owner, but careful cash flow management is absolutely essential for any 8(a) applicant who wants a waiver to join the 8(a) program early. Please enter your username or email address. 2. 8a program graduation years $250,000? The SBA will also look at all potential control issues closely to be sure there is no one else has control over owner. The two-year waiver will be required in this scenario. Even if you don't need one—or cannot imagine a future scenario under which you might need one—try to obtain a business line of credit from your local bank now.
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