5 Pointers Why 8a Certified Advantage Outweigh Cost And Time?

It’s not unknown how tough the US marketplace had evolved into in the post 9/11 world. A dwindling economy continued for over half a decade and now that the US market is getting back on its feet, thanks to the recent economic measures on the home front, companies are expecting to see prosperous days ahead. In this current economic scenario, it goes without saying that this is the perfect time for entrepreneurs to launch their startups and for small businesses to explore the hidden frontiers of prosperity - the federal marketplace - by cashing in with the 8a certified advantage.

8a Certified Advantage

Many small business firms are confused as to how the 8a certification outweighs the cost and time involved in getting this coveted approval from SBA. Here are 5 pointers to help your decide –

1. Sole Sourcing – it is a powerful vehicle that enables the federal agencies to award contracts (including purchase of goods and products and procuring for services) from 8a certified companies without having them to bid for the project. On the other hand sole sourcing enables the 8a certified small business firms to win contracts without entering into project bidding with their closest competitors, directly from the federal marketplace.

2. Limited Competition – Once you get your business 8a certified you actually limit the competition on getting federal contracts! You will be surprised to know that there are approximately 24 million businesses operating in the US soil, not surprisingly only 8500 of these firms gets to enjoy 8a certified advantage. So you have plenty of free space to jump into!

3. Huge Federal Spending - the federal government spends a lot of dollars each year on federal contracts with the 8a certified firms for procuring goods and services at pre-negotiated rates. Last year the amount of federal spending for 8a program was a staggering $30 billion. Now could you believe that? It’s only feasible if you get your small business certified through SBA 8a application.

4. Large Contract Amounts – Now that’s another catch for applicants who wish to benefit from 8a certified advantage. Contracts are quite large for all 8a approved firms. You must know that federal contracts are awarded up to $4 million for products and services and up to 6.5 million for manufacturing deals.

5. Honest and Fair Pricing - yes, only in the federal marketplace you’ll get to benefit from the honest and better pricing structure. The 8a certified firms gets a full and open source price adjustment is offered by federal customers to 8a firms up to 10% of the fixed contract amount.

So you can see from the above that once you can see your SBA 8a application through the certifying authority you’re in a win-win situation. Take benefit of the 8a certified advantage and set your business rolling on the fast lane of success.

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Filing A SBA 8A Certification Application Successfully

In the US economy there is enough scope for small and medium scale enterprises to grow. Over the last few years the constant squeeze in the global economy has taken a toll on the US market as well but it has not succeeded in putting the small and medium scale business enterprises out of business. This is largely because the US economy supports the growth small and medium scale enterprises that mainly depend on the local consumers rather than aiming for the global market. The 8a certificate for business can prove to be a leverage for those who at some point of time have faced some sort of discrimination— social, political or economic. However, business owners have to be careful enough while filing a 8a certification application.

SBA 8A Certification Application

The Small Business Administration or the SBA is a federal agency in the United States, entrusted with the task of helping small and medium scale business organizations gain a foothold in the market. The 8a certificate is a special recognition to those who have been subjected to racial, ethnic or economic discrimination in the past without any fault of their own. Business owners with 8a certificate enjoy some distinguished facilities over other businesses. Those who can have 8a certificate include African Americans, Hispanic Americans, Native Americans and Americans who originate from the Asia Pacific region. Business owners have to take the help of professional lawyers in order to file an application successfully and to avoid complications in future.

People who belong to the economically challenged section of the society are also eligible for an 8a certificate. Business owners with business properties whose net worth is less than $250,000 can apply for a sba 8a certificate. However, in order to apply successfully one has to fulfill each and every criterion down to the last detail. Failure to file an application successfully even once can make all future efforts even harder and so it is better to take the help of a professional law practitioner in this regard. Applicants have to fill each and every field carefully and provide authentic testimonials in support of their statements.

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Paving The Way For A Good Business Through GSA Schedule Contract

The General Services Administration is an agency chiefly responsible for meeting the requirement of the United States government offices and employees. They arrange for all the resources required for the functioning of the government including vehicles and office buildings. The GSA Schedule Contract helps business organizations supply their product directly to federal agencies on a long term basis. Each contract is drafted in such a way that it remains in effect for quite a few years. This allows business units to enter in to a long term business relationship with federal agencies.

Business Through GSA Schedule Contract

Federal customers can buy from GSA scheduled commercial concerns in order to get products at a discounted price. There are a few advantages of shopping from GSA scheduled commercial organizations. As a result a large number of people are getting more and more inclined towards buying from these companies in order to get quality products at a discounted rate. First, buyers are always able to save a good amount while buying products from gsa schedule contract holders. It is to be kept in mind that the federal government has to buy and avail a large number of products and services everyday and so even a small save on each product and service can result in saving a huge amount annually.

Second, the federal buyers can make a choice from a large number of options. As there are a large number of contractors enlisted under the schedule. This helps buyers get the right product at the right price. Moreover, the companies that are enlisted in the gsa schedule contract are managed by expert professionals and hence are able to offer effective and efficient services and suggestions to clients. As a result the clients can be rest assured that they are going to get the best possible products and services at the best possible price.

Third, procuring goods from a gsa schedule contract holder is not a time consuming affair at all. The contracts are pre-competed and make it possible to procure even the scarcest resources within a very little time. Buyers can connect with the right industry partners and are thus able to make the best and utmost utilization of their time. Most of the procurement is done within a very few days if all the formalities are completed properly.

Fourth, transparency is another important aspect of sourcing goods and services from a gsa schedule contract holding company. The whole process is managed over the internet and so it is possible to maintain a transparent approach in the procurement process. There is no room for malpractices and both the procurer and the supplier benefit from this practice.

There are many commercial units that are currently registered under the gsa schedule contract. Federal buyers can go through the internet in order to know more about the companies so that they can select the right one according to their requirement. While dealing with these companies the buyers can be rest assured that they are going to have the best products and services in the market.

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8 A Certification Financial Requirements And Limits

8 A Certification is a United States Small Business Development Program for the small businesses. By obtaining the certification, small businesses can get an access to the federal contracting opportunities. So, getting certified by the SBA is a big thing for small companies that want to grow.

Not every small company can get 8a certified by the Small Business Administration. The firm needs to be eligible for the 8a program. For being eligible, the firm has to be small as per the SBA standards; the owner of the firm should be disadvantaged both socially and economically, he/she should have a good character, the company has to be owned and controlled by the disadvantaged individuals and it should have been in business for a minimum of two years. Only if the company and the entrepreneur have all these qualifications, the SBA is going to approve the 8a application of the firm.

8 A Certification Financial Requirements

Here in this article we are going to discuss in detail about the financial requirements and limits for obtaining the 8 a certification.

Personal net worth--$250K

The applicant’s personal net worth should not be more than $250K. But do you know what this figure takes into account? It includes all your cash, bonds, stocks, savings and checking accounts, automobiles, RVs, motorcycles and other assets. Though you will need to declare the value of your company, home, 401ks and IRAS on the SBA Form 413 or personal financial statement, they will not be included within the personal net worth limit. The Small Business Administration doesn’t include the value of your home, company or retirement accounts.

Annual salary--$250K

The applicant’s annual salary should not be beyond $250K. The person needs to be the highest paid one in the company. Moreover, his/her salary needs to be reasonable as per the industry standards and should be reasonable in proportion to the annual gross revenue of the firm. The Small Business Administration is going to consider both the salary as well as the amount the entrepreneur draws from the bank account of the company while determining what all is constituted in the ‘total owner compensation.’

Assets market value--$4 million

The individual who is applying for SBA 8a application needs to keep one very important thing in mind. He/she should make sure that the total market value of all the assets that he/she possess is not more than 4 million dollars. The person can ignore the liabilities when considering the total market value of the assets.

The 8a application reviewers generally look for any large or unusual transfers of money between the accounts during the three year period preceding the 8a application submittal. Few things, which the reviewers look for include huge amounts of money presented to relatives or mortgages for homes, which are quickly paid off.

3 year average AGI--$250K

The applicant’s 3 year average AGI or adjusted gross income as shown on the federal tax returns should not be more than $250K.

As far as the financial requirements and limits for 8 a certification is concerned, you should note the above-mentioned four points. They are going to be of great help to you while preparing the SBA 8a application.

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SBA 8a Application: 4 Major Mistakes Applicants Often Make

Do you want your small business to get 8a certified? You first need to make sure whether you are eligible for the SBA 8 a certification requirements. If you are unable to meet any one of them, you will be rejected by the United States Small Business Administration. The SBA is very strict with reviewing the application. Any mistake on your part will delay your request and cause harassment to you or even jeopardize your chances of getting 8a certified by the SBA.

8 a certification

Here in this blog, we have discussed the four major mistakes, which applicants often make while applying for the 8a program. Make sure not to make these mistakes when you apply for the certification program.

Never appoint your better half as the CEO of your company

Many applicants make the mistake of appointing their spouse as the CEO of the firm. This is one of the major mistakes they do. You should never do this unless your better half has a strong background in business management or has held a top management position in other companies in the past. Make sure your spouse has technical credentials as well if you plan to appoint him/her in the position of CEO.  The person you appoint as the Chief Executing Officer of your small firm should have the appropriate skills, expertise, licenses and credentials required to succeed in the industry.

Never obtain contracts from your X-employer

You should make it a point not to acquire contracts from your past employers. If you do acquire contracts from them, it will see as if your form is just a front for them. All you need to do is develop a wide base of clients and have a balanced project portfolio before getting involved in the SBA 8a application procedure.

Never appoint a number of Board of Directors

One of the major mistakes, which small companies often do is, just after few months of their commencement they appoint a number of board of directors. Never do this because you might dilute your firm control or come up with an affiliation or size problem. Carefully vet all the directors and officers before applying for the 8 a certification because these people will need to submit some of their personal documents as part of the firm’s 8a application.

Never show a loss on company taxes

Applicants often think that they might get approval from the SBA if they show the agency that they have incurred losses while running the company. Never do this. Instead show positive equity and positive revenue in your business to prove the SBA that your firm is in a stable and healthy condition.

Always make sure that you do not make these above-mentioned SBA 8a application mistakes if you want your company to get 8a certified at one go.

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Arranging The Personal Financials Is Compulsory Before Requesting For 8A Certification

If you are thinking to request for the 8A certification without arranging your finances, it is quite certain that your 8A application will get denied. According to the federal rules set of the SBA, your personal finances must be synchronized to get access to federal funded contracts.

Requesting for the 8A programs needs fulfillment of numerous pre-requisites. One of the key requisites to be fulfilled for successful 8A certification is the appropriate planning of your financials. According to the rules of the government programs, if you are requesting for schedule projects you must correctly coordinate the financial position of your firm and deliver your SBA application in a methodical and disciplined way. Professionals suggest that, if you own a small firm and wish to get rid of your personal financial barriers effortlessly to request for the 8a programs, it can be completed in a number of ways namely:

8a Certification

 Assembling a list of the liabilities

Before you request for the 8 A Certification programs, arrange a list of all your incomplete dues and liabilities namely credit card accounts, car payments, mortgages and HELOCs. Agreeing to the SBA, if you are a candidate you must disclose all your liability to the SBA.

Placing papers for all accounts

If you own an account for any liability or asset, appropriate documents must be delivered to display its current value. To validate the existence of such accounts, suitable documents must be offered instead of just word-of-mouth.

Good riddance from debts

If you have any federal obligation such as linens, arrear taxes or student loans it is highly suggested to pay it off. In case you are unable to pay your debt completely, establish up a formal payment option with the leading federal agencies like IRS, SBA, or Department of Education. Ensure that the plan is included in the 8A application before submitting it.

Keep a record of assets

Maintain a record of all your assets before prior sending the application for the 8A program. If you possess an asset together with your spouse, do not forget to indicate it in the list. It is compulsory for you to make the SBA alert of each asset, online accounts or 401k plans you own, prior sending the requesting for 8A certification.

Place your documents in order

After organizing all your documents, use a binder or folder where it can be easily accessed when needed while creating for 8A application. You can utilize your account statement to aid your financials while sending application.

If you do not obey to the basic instructions and layouts set by the government program, your request will get denied. Meeting the financial requirements is one of the rudimentary requirements to get your company 8Acertified successfully. Hence, it is compulsory for you to pay attention to the above-mentioned ideas and solve your financials prior submitting your SBA certification request to bid for government projects.

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Basic Facts about 8a Certification

8a Certification

If you have started a small business and wondering where to and how to qualify for a WOSB or EDWOSB program, then the first thing you would need is an 8a certification from the SBA. However, you need to meet some requirements to get eligible for this certification.

To get qualified for 8a certification, you need to have a basic knowledge on it. WOSB or woman owned small business is a Federal program, which offers equal access to women and economically disadvantaged women, owning small businesses for contracting opportunities in the Federal. Through this program, contracting officers can set aside some specific federal contracts and offer them to EDWOSB or WOSB, as per the 300 NAICS codes, mentioned in the federal. Some of the eligibility factors for 8a application approval are as follows:

  • The firm needs to be at least 51% owned by women, who are in unconditional control over administration.

  • All the governing body members (women) need to be the US citizen.

  • Apart from the women, no man should have any control on the firm’s administration.

  • Women, in charge of administration should have adequate managerial experience and expertise.

  • The owners of the firm need to manage full time.

The above-mentioned factors are mandatory for SBA 8a certification for both EDWOSB and WOSB programs. For EDWOSB program, you need to  have some additional requirements, which are:

  • The business should have a net worth of not more than $750,000.

  • The gross income of an individual need to be not more than $350,000 a year for the last 3 consecutive years.

The benefit of 8a certification is that it is a significant marketing tool for economically and socially disadvantaged women, having small business. With this certification, they get access to the federal government contracts. However, in the initial stage, contracting under this 8a program may seem a little hard, because the competition is open and contracts are gained through a procurement of sealed bid. But, in the long run it proves beneficial for both the 8a contractor and the government. To get your 8a application approved by the SBA, you can take help of a professional expert and do away with the application hassles. Every money spent toward the professional consultancy would  worth once you get the certificate.

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