1. 8(a) Business Development (BD) Program
Tips for Success
Teresa Tyhurst
U.S. Small Business Administration
Office of Certification and Eligibility-San Francisco

2. Topics Preparation of Your 8(a) Application
Common Eligibility Concerns
Compliance During Participation
Future Changes

3. Preparation of Your 8(a) Application

4. Submit a Complete Application
Preparation of Your 8(a) Application
Submit a Complete Application
ALL applications require supporting documents – refer to application’s document checklist
Application and supporting documents must be submitted even if ANC, Indian Tribe, NHO, or CDC already owns another 8(a) Participant
SBA will not obtain supporting documents from another 8(a) official file or application – it is the applicant’s responsibility to obtain and submit required documents

5. Submit a Complete Application (cont’d)
Preparation of Your 8(a) Application
Submit a Complete Application (cont’d)
Application must include governing documents for parent company – i.e. constitution, corporate bylaws, Articles of Incorporation
Application must also include governing documents for holding company (if applicable) – i.e. Articles of Incorporation, corporate bylaws, Articles or Organization, operating agreement

6. Preparation of Your 8(a) Application
Acquisitions
If applicant firm was an acquisition, include documentation to show acquisition of applicant firm was an arm’s length transaction
Factors to determine arm’s length transaction
How was purchase price calculated?
Was adequate consideration paid? Does consideration paid have a reasonable relationship to an objective valuation or appraisal?
What are payment terms if purchase was financed? Is payment triggered by independent event not controlled by the noteholder?
Compliance with payment terms of purchase/sale agreement and/or promissory note

7. Preparation of Your 8(a) Application
Primary NAICS Code
If applicant firm is a new business, include information to substantiate primary NAICS code selected
Has company sought work in the primary industry? Include copies of proposals, bids, etc.
Does company have managers and employees who possess the necessary expertise in the primary industry? Include resumes

8. Principal Place of Business
Preparation of Your 8(a) Application
Principal Place of Business
Principal place of business is the business location where the individuals who manage the company’s day-to-day operations spend most working hours and where top management’s business records are kept
SBA servicing office is based on a company’s principal place of business
If company’s principal place of business is in San Diego, should not list alternate address in order to be serviced by another SBA office

9. Ownership Restriction
Preparation of Your 8(a) Application
Ownership Restriction
Provide information regarding primary NAICS code and business activities of other companies owned by the parent that are current 8(a) Participants or that have left the program within the past two years

10. Common Eligibility Concerns

11. Management of Daily Operations
Common Eligibility Concerns
Management of Daily Operations
Applicant firm’s governing documents must clearly identify the individual responsible for the day-to-day management and operations
Individual must manage on a full-time basis
Individual responsible for the daily management and operations must be appointed
SBA cannot determine eligibility if individual has not yet been appointed

12. Disclosures on SBA Form 912
Common Eligibility Concerns
Disclosures on SBA Form 912
Form 912 is specific with respect to offenses that must be disclosed
Offense must be disclosed even if conviction, guilty plea, no contest plea, placement in pretrial diversion, or placement on parole or probation occurred a long time ago
Fingerprint cards may be required even if they were previously provided for another application

13. Administrative Services Agreements
Common Eligibility Concerns
Administrative Services Agreements
Companies owned by entities (Indian Tribes, ANCs, Tribes, NHOs, CDCs) have an affiliation exception
No affiliation based on common ownership and control
No affiliation based on the performance of common administrative services as long as adequate payment is provided for such services

14. Administrative Services Agreements (cont’d)
Processing of Your 8(a) Application
Administrative Services Agreements (cont’d)
Common administrative services can include: accounting, HR support, recruiting, and duties not related to contract performance or management
Contract administration services that are administrative in nature (i.e. record retention, maintaining databases of awarded contracts, template development, invoice preparation) are shared common administrative services

15. Administrative Services Agreements (cont’d)
Processing of Your 8(a) Application
Administrative Services Agreements (cont’d)
Contract administration services that include actual and direct day-do-day oversight and control of the performance of a contract (i.e. negotiating directly with the government agency regarding proposal terms, contract terms, scope and modifications, project scheduling, hiring/firing of employees) are not shared common administrative services

16. Compliance During Participation

17. Compliance During Participation
Notify SBA of Changes
Notify SBA regarding all changes of ownership and management
SBA often finds out during the annual review process that changes have taken place
If in doubt whether a change must be approved by SBA, contact your BOS to disclose

18. Future Changes

19. Future Changes
Streamlining
SBA is actively working on streamlining the application process, i.e. eliminating unnecessary documents
What are your concerns regarding the current process?
We welcome suggestions for the streamlining process
We will ensure your input is forwarded to the AA/BD for further consideration

20. Questions? Office of Certification and Eligibility-San Francisco
Office of Certification and Eligibility-King of Prussia
8(a) HQ Office:
SBA Answer Desk: