| 8a Certification | | | | However the US Federal Government is the largest |
| The Small Business Administration (SBA) 8a Program | | | | purchaser of goods and services in the world and |
| is designed to help small economically and socially | | | | have special SDBU Outreach Events designed to help |
| disadvantaged firms by giving them lucrative | | | | 8a Businesses meet up with potential government |
| government contracts. I would highly recommend | | | | clients. |
| looking into getting 8a Certified if your firm qualifies. | | | | The Application |
| The process of getting 8a certified is not for every | | | | So you have decided you would like to go ahead |
| company, it is estimated that of the 9,000 8a | | | | with the application process. We get calls all the time |
| Certified firms only 6,000 used their 8a Certification | | | | from firms that were just told they could have a |
| to obtain federal contracts in 2008. An important | | | | government contract at an army base if they had |
| consideration before you begin the process is what | | | | their 8a Certification. These firms would like their 8a |
| will this certification do for your business. Becoming | | | | Application processed immediately so they don't lose |
| an 8a Certified company is not just filling out a one | | | | this once in a lifetime opportunity. The 8a process |
| time application getting approved and holding a license | | | | can be quick if you get all of your ducks in a row and |
| to get set-a-side contracts from the government for | | | | don't have any major issues such as delinquencies on |
| the next 9 years. After certification a business plan | | | | Federal Loans or Federal back taxes and have all of |
| must be submitted via form 1010c which is not a | | | | your financial information easily accessible. But the |
| typical business plan and a firm must re-register with | | | | average time for the SBA to process an 8a |
| the SBA on an annual basis. The SBA form 1010c is | | | | application without a two year waiver is |
| designed to determine your business goals as well as | | | | approximately 3 months. Once the application is |
| potential early graduation criteria (graduation ends | | | | completed a form 1010c must be submitted to your |
| your 8a designation). During these yearly registrations | | | | local SBA representative and that will take at least |
| financial limits on working capital and other financial | | | | two additional weeks (if you have the form 1010c |
| ratios are also reviewed. | | | | completed in advance of the initial meeting with the |
| In terms of completing the 8a application even with | | | | SBA rep, usually this takes 2 months). |
| the use of a consultant a business owner will have a | | | | The Basic Checklist |
| few hours of information gathering time into the | | | | Socially Disadvantaged |
| application. Our estimate on non-consultant application | | | | Economically Disadvantaged |
| time is in excess of 150 hours. Once the 8a | | | | Good Moral Standing |
| application is completed 70% of all 8a applications are | | | | Business Leader |
| returned from the SBA for lack of completeness and | | | | Control |
| never reviewed. | | | | Ability to Succeed |
| 8a Opportunities | | | | Mentoring Program |
| In 2008 the Federal Government set-a-side $13 Billion | | | | The SBA allows an 8a certified firm to have a |
| Dollars in Federal Procurement for the SBA 8a | | | | mentor firm help fulfill a large portion of the Federal |
| Program. There are 9,000 companies with 8a | | | | Contracts that an 8a Certified firm obtains using it's |
| Certification in the United States with roughly 1,000 | | | | 8a certification. The SBA will make sure that this |
| new certified companies receiving their 8a | | | | arrangement is balanced between the two firms and |
| Certification every year. That means on average | | | | the arrangement is designed to help the 8a firm grow |
| there is $1.4 - $1.5 Million for each 8a Certified | | | | towards business sustainability. That is a minority |
| Company and many of these contracts come with 10 | | | | owned business that can compete in the general |
| year gsa schedules. Another advantage is that 8a | | | | business marketplace without government set-a-side |
| Certified companies have a 10% cost advantage | | | | contracts. This can be a great way for smaller 8a |
| over other competing firms, making the contracts | | | | Certified approved companies to perform larger |
| potentially more lucrative for 8a firms. These dollars | | | | Federal Contracts that they would otherwise be |
| are relatively easy to find for certain types of firms | | | | unable to perform or feel intimidated due to risk |
| such as construction companies, computer | | | | factors involved with obtaining large Federal |
| programming companies, food service, janitorial | | | | Contracts. This gains the 8a certified firm valuable |
| companies, etc. Contracts are more difficult the more | | | | experience and knowledge for future growth. |
| specific the NAICS code is in which the firm operates. | | | | |