SBA 8(a) Program Help From GCS Inc.

Government Certification Specialists Inc. has decided to combine its blog posts about women in business and the new Woman Owned Small Business Federal Contracting Program with our other blog posts about issues of concern to all disadvantaged small business owners. You can now read our fresh new blog posts in one centralized location at http://get8acertified.wordpress.com/

Small Business Administrator Karen Mills informed Congress last week that the Woman Owned Small Business (WOSB) federal contracting program–which will allow set aside contracts to be offered to woman owned small businesses within 83 industries in which women have long been underrepresented–is anticipated to launch by the end of the year.

This long awaited program–sometimes referred to as the 8(m) program–complements other SBA and federal set aside programs such as the 8(a) program, the HUBZone program, and Service Disabled Veteran Owned Small Business set aside program.

If your company is interested in applying for Small Business Administration 8(a) certification, there are a number of prerequisites you should fulfill in preparation for submitting your 8(a) application to the Small Business Administration for review.

The following list is a quick summary of ten simple yet essential steps to take before applying for 8(a) certification:

1. Register your company. Make sure your company already possesses a federal employer identification number (sometimes called a “FEIN” or an “EIN”), a Data Universal Numbering System (“DUNS”) number from Dun and Bradstreet (a credit reporting agency for businesses), and a complete profile in the federal Central Contractor Registration database, or CCR (which should be updated at least once per year). Here is where to go if you are missing one of these key items:

• Federal Employer Identification Number:            http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
• Data Universal Numbering System (DUNS): http://www.dnb.com
• Central Contractor Registration: http://www.ccr.gov

2. Pay your taxes. Pay all of your federal, state, and local taxes in full or else obtain payment plans and make your first scheduled payment under each payment plan before applying to the 8(a) program. Make sure all company owners, officers, directors, and key staff members are also up-to-date on their tax obligations.

3. Check your standing with the state. Check with your Secretary of State’s office to ensure that your company is in good standing so you can get a “certificate of good standing” or “certificate of status” marked with the current year to include inside your 8(a) application. Pay any annual fees and property taxes due to the state and file your annual report, if required, to maintain your company’s good standing.

4. Organize your company formation documents. Make sure you have all of the required company formation documents for your particular state and your particular company structure. For example, if you are a Limited Liability Company (LLC) owner, you will need an Operating Agreement and Articles of Organization to operate legally in most states. If anything is missing, either create the required document using a reputable legal site like www.nolo.com or order a complete copy from the state; there is usually a nominal fee for copying expenses.

5. Find your tax records and don’t forget the W-2 forms. You will need to provide the SBA with three consecutive years’ worth of company taxes and two consecutive years’ worth of personal taxes. The SBA wants all schedules, attachments, and W-2 forms. You don’t need to submit state taxes to the SBA unless the SBA specifically asks you for them. If you have lost your taxes, order full copies from the IRS but expect this process to take several weeks.

6. Inform all company owners, officers, and key employees about the requirement to provide personal information to the government. For your 8(a) application to be successful, all owners, officers, directors, and key employees must submit personal and financial data to the SBA for review, so you will need their consent. Because of a recent, scathing Government Accountability Office (GAO) report about problems within the 8(a) program, all company officers, owners, and key representatives should expect increased scrutiny from the SBA during the 8(a) application process. Honesty and full disclosure are imperative.

7. Assemble your licenses and permits. Obtain current, valid copies of all occupational, tax, state, county, and local licenses and permits your business needs to operate legally in its state for inclusion in the 8(a) application. If you are uncertain which licenses and permits you need for your jurisdiction, contact your Secretary of State’s office for help.

8. Ensure your company is actually small. This tip might sound ridiculous, but some companies fail to determine that they meet the Small Business Administration size standard for their primary industry before filing for 8(a) status. If you are uncertain what constitutes a “small business” for your industry, consult the current SBA size standards to make sure your company truly is considered small (and don’t forget to add in any affiliates or subsidiaries when calculating your size): http://www.sba.gov/contractingopportunities/officials/size/index.html

9. Ensure your primary North American Industrial Classification System (NAICS) code has not changed since last year. Gather your contracts from the most recent calendar year, determine which NAICS code they fall under, and assess whether or not your primary NAICS has shifted into another category since the previous year in operation. Your primary NAICS code affects your size standard (see #8 above.) If you don’t know what your NAICS code, is the Census Bureau can help you with that: http://www.census.gov/eos/www/naics/

10. Check your personal credit report for errors and fix any mistakes you find. These days the SBA runs credit checks on most 8(a) applicants, so obtain a free copy of your personal credit report at www.annualcreditreport.com and check it rigorously to make sure there are no critical errors. This is especially important if you think you might be hovering near the 8(a) program personal net worth cap of $250,000—you don’t want old investments that you sold years ago to remain on your credit report, for example.

If you follow these ten simple preparatory steps, meet the baseline 8(a) eligibility requirements, locate and compile all of the required materials listed on your SBA 8(a) checklist (check your SBA Form 1010 for the checklist), and approach your 8(a) application with patience, honesty, and diligence, you should be pleasantly rewarded with 8(a) certification within a few months.

The Small Business Administration has identified the following industry sectors as fields in which Woman Owned Small Businesses (WOSBs) are underrepresented and substantially underrepresented: 

The forty-five NAICS codes in which WOSBs are underrepresented are:
2213–Water, Sewage and Other systems; 2361–Residential Building
Construction; 2371–Utility System Construction; 2381–Foundation,
Structure, and Building Exterior Contractors; 2382–Building Equipment
Contractors; 2383–Building Finishing Contractors; 2389–Other
Specialty Trade Contractors; 3149–Other Textile Product Mills; 3159–
Apparel Accessories and Other Apparel Manufacturing; 3219–Other Wood
Product Manufacturing; 3222–Converted Paper Product Manufacturing;
3321; Forging and Stamping; 3323–Architectural and Structural Metals
Manufacturing; 3324–Boiler, Tank, and Shipping Container
Manufacturing; 3333–Commercial and Service Industry Machinery
Manufacturing; 3342–Communications Equipment Manufacturing; 3345–
Navigational, Measuring, Electromedical, and Control Instruments
Manufacturing; 3346–Manufacturing and Reproducing Magnetic and Optical
Media; 3353–Electrical Equipment Manufacturing; 3359–Other Electrical
Equipment and Component Manufacturing; 3369–Other Transportation
Equipment Manufacturing; 4842–Specialized Freight Trucking; 4881–
Support Activities for Air Transportation; 4884–Support Activities for
Road Transportation; 4885–Freight Transportation Arrangement; 5121–
Motion Picture and Video Industries; 5311–Lessors of Real Estate;
5413–Architectural, Engineering, and Related Services; 5414–
Specialized Design Services; 5415–Computer Systems Design and Related Services; 5416–
Management, Scientific, and Technical Consulting Services; 5419–Other
Professional, Scientific, and Technical Services; 5611–Office
Administrative Services; 5612–Facilities Support Services; 5614–
Business Support Services; 5616–Investigation and Security Services;
5617–Services to Buildings and Dwellings; 6116–Other Schools and
Instruction; 6214–Outpatient Care Centers; 6219–Other Ambulatory
Health Care Services; 7115–Independent Artists, Writers, and
Performers; 7223–Special Food Services; 8111–Automotive Repair and
Maintenance; 8113–Commercial and Industrial Machinery and Equipment
(except Automotive and Electronic) Repair and Maintenance; and 8114–
Personal and Household Goods Repair and Maintenance.

The thirty-eight NAICS codes in which WOSBs are substantially
underrepresented are:2372–Land Subdivision; 3152–Cut and Sew Apparel
Manufacturing; 3231–Printing and Related Support Activities; 3259–
Other Chemical Product and Preparation Manufacturing; 3328–Coating,
Engraving, Heat Treating, and Allied Activities; 3329–Other Fabricated
Metal Product Manufacturing; 3371–Household and Institutional
Furniture and Kitchen Cabinet Manufacturing; 3372–Office Furniture
(including Fixtures) Manufacturing; 3391–Medical Equipment and
Supplies Manufacturing; 4841–General Freight Trucking; 4889–Other
Support Activities for Transportation; 4931–Warehousing and Storage;
5111–Newspaper, Periodical, Book, and Directory Publishers; 5112–
Software Publishers; 5171–Wired Telecommunications Carriers; 5172–
Wireless Telecommunications Carriers (except Satellite); 5179–Other
Telecommunications; 5182–Data Processing, Hosting, and Related
Services; 5191–Other Information Services; 5312–Offices of Real
Estate Agents and Brokers; 5324–Commercial and Industrial Machinery
and Equipment Rental and Leasing; 5411–Legal Services; 5412–
Accounting, Tax Preparation, Bookkeeping, and Payroll Services; 5417–
Scientific Research and Development Services; 5418–Advertising, Public
Relations, and Related Services; 5615–Travel Arrangement and
Reservation Services; 5619–Other Support Services; 5621–Waste
Collection; 5622–Waste Treatment and Disposal; 6114–Business Schools
and Computer and Management Training; 6115–Technical and Trade
Schools; 6117–Educational Support Services; 6242–Community Food and
Housing, and Emergency and Other Relief Services; 6243–Vocational
Rehabilitation Services; 7211–Traveler Accommodation; 8112–Electronic
and Precision Equipment Repair and Maintenance; 8129–Other Personal
Services; and 8139–Business, Professional, Labor, Political, and
Similar Organizations.

For more information, Government Certification Specialists Inc. can be contacted at info@get8acertified.com or 703-350-8381.

Our main website is: http://www.get8acertified.com

The national organization known as SCORE—“Counselors of America’s Small Business Owners,” formerly referred to as the “Service Corps of Retired Executives,” hence the acronym “SCORE”—offers a wealth of resources, tips, and guidance targeted towards the unique needs of woman owned businesses.

First, check out the SCORE page specifically dedicated to woman owned firms and their concerns: http://www.score.org/women/site.html

Next, catch up on timely tips and recent news on the SCORE Women’s Success Blog: http://womensblog.score.org

Then, if you need personal, private, one-on-one mentoring from a SCORE representative, find the closest SCORE location near you here: http://www.score.org/findscore/index.html

You can also ask SCORE for advice online; peruse the website’s many helpful articles on topics ranging from disaster planning to cash flow management; and skim through the calendar to find special networking events and SCORE seminars near you.

SCORE is an official partner of the Small Business Administration.

For more information about SBA 8(a) contracting for woman owned businesses, please email GCS Inc. at info@get8acertified.com.

As of late 2009 the federal government had not yet met its goal of awarding 5% of American Recovery and Reinvestment Act (ARRA) contracts to woman owned businesses, according to U.S. Senate Committee on Small Business and Entrepreneurship Ranking Member Olympia J. Snowe (R-Maine).

“More than $1 out of every $4 spent on federal Recovery Act contracts has gone to small businesses. The only subcategory in which agencies have failed to meet the overall goal is women-owned small businesses, which have received 4 percent of all Recovery contracts,” states Government Executive magazine.

Back in 2000 a women’s contracting program law (P.L. 106-554) was established to encourage the U.S. government to award more contracts to woman owned firms, but to date the program exists more on paper than in reality. Women owned businesses are still waiting on the Small Business Administration to launch a special contracting program similar to the 8(a) program for minority owned firms and the HUBZone program for companies headquartered in impoverished urban areas.

Woman owned businesses have several tools at their disposal, however, to promote themselves and aim for federal dollars, such as:

·         Pursuing state-level or municipal-level certifications slated for woman owned businesses.

·         Attaining other business certifications such as veteran owned, disabled veteran owned, minority 8(a) owned, or HUBZone owned status, if applicable.

·         Approaching large federal prime contractors to establish mutually beneficial teaming arrangements. For example, Microsoft and other large vendors have internal goals for contracting with small, woman and minority owned businesses.

Another option is to attain woman owned business certification from a private certifying body such as the Women’s Business Enterprise National Council, then take advantage of all of the networking and business development options offered through that organization.

As we ring in the New Year 2010, let’s hope our government will achieve its goal of awarding 5% of all ARRA dollars—and indeed 5% of all federal contracts—to woman owned firms.

Government Certification Specialists Inc.of Leesburg, Virginia can be reached at 703-350-8381 or via email at info@get8acertified.com.

The Small Business Administration (SBA) announced today that as a result of a comprehensive review of the 8(a) business development program, a variety of new rules and regulations for the program are proposed to help more companies participate in and benefit from the 8(a) program.

Small disadvantaged business owners are encouraged to review and comment upon the proposed changes to the 8(a) rules here:

http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480a4cb48

Your comments will help the government evaluate, assess, and possibly modify these proposed rules before implementation. You can also read comments from other interested parties via www.regulations.gov.

This is an unprecedented chance for your voice to be heard, whether you are enrolled in the 8(a) program now, applying for 8(a) status, or have been declined for 8(a) status in the past.

If you have trouble accessing the proposed regulations, please email Government Certification Specialists Inc. at info@get8acertified.com with the subject line “new 8a rules,” and we will email you a 31-page PDF document of the proposed changes.

Government Certification Specialists Inc. encourages all owners of small, disadvantaged businesses to contribute to the evaluation process for these proposed SBA 8(a) rules and regulations. The Small Business Administration needs to understand–and wants to understand–the economic conditions and business realities that face your company today. When you provide the government with your thoughtful feedback, you can help influence policy.

If you are a woman entrepreneur who is interested in contracting with the federal government, the Small Business Administration has a new, free online course available to help teach you the basics of government contracting.

The course is called “Winning Federal Contracts: A Guide for Women Entrepreneurs” and is accessible online at www.sba.gov/fedcontractingtraining.

The course is a self paced tutorial with both audio and script so you can take notes as you move through the tutorial at a comfortable speed. After completing the course, if you need additional help, you can contact the SBA’s Office of Women’s Business Ownership at http://www.sba.gov/aboutsba/sbaprograms/onlinewbc/index.html and find out where your local SBA office is located for more one-on-one assistance.

For more information, you can contact Government Certification Specialists Inc. at 703-350-8389 or via email at info@get8acertified.com.

In a memorandum issued August 21, 2009, the U.S. Department of Justice announced that its legal review has determined that the federal Small Business Act “establishes parity” between the Small Business Administration (SBA) 8(a), HUBZone, and Service Disabled Veteran Owned Small Business contracting programs. In other words, federal contracting officers cannot be directed to favor one set aside program over another.

This Justice Department decision overrules a previous interpretation by the Government Accountability Office (GAO) that stated the Small Business Act established priority for the HUBZone program over all other programs.

The Justice Department memorandum states “we conclude that the Act does not compel SBA to prioritize the HUBZone Program in the manner GAO determined to be required. In our view, SBA’s regulations permissibly authorize contracting officers to exercise their discretion to choose among the three programs in setting aside contracts to be awarded to qualified small business concerns.”

This Justice Department decision allays the fears of many 8(a) and Service Disabled Veteran Owned Small Businesses (SDVOSBs) that were concerned the GAO’s interpretation of the Small Business Act would have caused contracting officers to abandon 8(a) and SDVOSB contracts in favor of HUBZone contracts.

It is anticipated that Congress will soon pass new legislation to enforce the so-called “parity rule.”

Here is a brief overview of the sequence of events involved in applying for and receiving 8(a) certification from the Small Business Administration:

1. Fill out the online SBA 8(a) application here.

2. Print out the application when you are finished and attach all of the background documents, such as your By Laws, Certificate of Good Standing, etc. (The online application will give you a customized checklist of baseline documentation required.) Mail all materials to the appropriate SBA processing office–either the one located in San Francisco, California or the one in King of Prussia, Pennsylvania (the “Philadelphia office.”) Your electronic application will give you the specific address of the specific SBA office you should mail your application to; the location is determined by your geographic location.

3. Respond to SBA questions and SBA’s requests for additional documentation as required. When SBA is satisfied that it has all of the data and documents it needs, it will begin the evaluation phase.

4. You will receive an approval letter from the Washington, DC SBA headquarters if you are accepted into the 8(a) program. Sign and return the participation agreement immediately.

5. You will attend an 8(a) orientation meeting at which your company’s 8(a) business plan on SBA Form 1010C will be reviewed.

6. Once your business plan is officially approved by SBA, you are ready to start 8(a) contracting.

7. One calendar year after acceptance into the 8(a) program, turn in your annual update paperwork for review using the SBA’s electronic system.

For more information about the sequence of events involved in applying for and attaining 8(a) certification, please email Government Certification Specialists Inc. at info@get8acertified.com.