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8(a) BUSINESS DEVELOPMENT PROGRAM

REPORTING REQUIREMENTS

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EFFECTIVE OCTOBER 01, 2008

• Virtually ALL Communications are Electronic

• 8(a) Firms are required to submit forms & documents electronically via the New SBA BDMIS System

• Failure to comply with submissions will result in program termination

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8(a) Reporting Requirements

• Mandatory by Law and Code OF Federal Regulations (CFR)

• Agreed to in Participation Agreement

• Required to Receive 8(a) Contract Support & Other Assistance

• Required to Maintain Eligibility

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Electronic Submissions

• Upon completing electronic submissions, documents/forms requiring original signatures must be printed, signed and dated

• Documents/forms requiring original signatures must be mailed to SBA with supporting documents (i.e.: business and personal tax returns, w2’s, financial statements, etc.)

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Review of Reporting Requirements

• Business Plan- SBA form 1010C

• Personal Financial Statements- SBA 413

• Business Financial Statement

• Annual Reviews- SBA Form 1450

• Representative Reports- SBA Form 1790

• CCR/Dynamic Small Business Search

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BUSINESS PLAN- SBA FORM 1010C

• 13 CFR Part 124.402

• Given at orientation

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BUSINESS PLAN REQUIREMENTS (cont'd)

• Must submit within 30 days of orientation with BDS

• Must be submitted and approved prior to receiving any 8(a) contract support or other SBA assistance

Note: Failure to submit is grounds for termination

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FINANCIAL STATEMENTS

• 13 CFR 124 PART.602

• Sales less than $1 million: Compilation Statement prepared in house or by CPA

• Sales $1-$5 million: Reviewed Statement prepared by CPA

Note: Both of the above are due 90 days after close of FYE

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FINANCIAL STATEMENTS (cont'd)

• Sales greater than $5 million: Audited by CPA & due no later than 120 days after FYE

Note: Failure to submit Annual Financial Statements on time makes you ineligible for 8(a) Contracts or any other SBA support and can lead to Program Termination

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ANNUAL REVIEW REQUIREMENTS

• Regulations 13 CFR Part 124.403

• Annual Eligibility Review

• Each 8(a) participant must submit annually:

• SBA Form 1450 8(a) Annual Update

• SBA Form 413 Personal Financial Statement: For each person claiming eligibility

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ANNUAL REVIEW REQUIREMENTS (cont'd)

• Most recent Personal and Business Tax Returns With All Attachments or Copy of Request for Extension

• Transition Management Plan

• Mentor-Protégé Report

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ANNUAL REVIEW REQUIREMENTS (cont'd) COMPETIVE BUSINESS MIX

Program Year

Year in Transition

Stage

Business Activity Target

5 1 15 %

6 2 25 %

7 3 35 %

8 4 45 %

9 5 55 %

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Excessive withdrawals, are defined as those withdrawals during any one fiscal year that exceed:

• $150,000 for participants with sales up to $150,000 for participants with sales up to $1,000,000$1,000,000

• $200,000 for participants with sales between $200,000 for participants with sales between $1,000,000 and $2,000,000$1,000,000 and $2,000,000

• $300,000 for participants with sales over $2,000,000

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• Total withdrawals are calculated on each person upon whom eligibility is based

• For example, for a participant with sales of $900,000 and with 2 persons upon whom eligibility was based, the total withdrawals may not exceed $300,000 or 2 times $150,000

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ANNUAL REVIEWS REQUIREMENTS (cont'd)

• Officer’s salary• Cash dividends• Distributions in excess of

amounts needed to pay S Corporation taxes

• Cash withdrawals• Property withdrawals• Bonuses• Rents• Loans

A “withdrawal” includes, but is not limited to:

• Advances• Payments to immediate

family members • Investments on behalf of

an owner, officer, or key employee,

• Acquisition of a business not merged with the participant

• Charitable contributions• Speculative ventures

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WHAT IS TERMINATION?

• 13 CFR 124 PART.303

• SBA may terminate a concern from the 8(a) BD program prior to the expiration date of the Program Term for good cause

• Examples of good cause for termination include, but are not limited to, the following;

• Submission of false information in the concern’s 8(a) BD application

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WHAT IS TERMINATION? (cont'd)

• Failure by the concern to maintain its eligibility for program participation

• Failure by the concern for any reason to maintain ownership, full time day-to-day management & control by disadvantaged individuals

• Failure by the concern & its principal (s) to maintain good character

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• Cessation of business operations by the concern

• A pattern of inadequate performance of awarded 8(a) contracts

• A pattern of failure to make required submissions or responses to SBA in a timely manner

• Failure to make reasonable efforts

to develop & achieve competitive viability

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•Failure by the concern to pursue competitive & commercial business in accordance with its \business plan, or in any other way;

• The examples of good cause listed above are intended to be illustrative only

• Other grounds for termination from the 8(a) program exist & may be used by SBA

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SBA FORM 1790

Representatives Used and Compensation Paid for Services in Connection with Obtaining Federal Contracts

• 13 CFR Part 124.601

• Covers prior year calendar dates (Jan 1-Dec. 31)

• Required Annually by Jan 31- Electronically

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SBA FORM 1790 (cont'd)

• Must provide information on any person contracted with or hired to assist in obtaining

federal contracts – “marketing reps or consultants”

• Excludes regular employees

Note: Failure to submit is grounds for program termination

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Central Contractor Registration (CCR) & Dynamic Small Business Search

• Must be updated at least annually

• Profiles not updated in past 18 months are excluded from searches

• Contact name and E-Mail addresses must be the person upon whom eligibility is based

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OWNERSHIP CHANGES

• Failure to obtain SBA’s prior approval to make ANY CHANGES to your firm’s ownership will jeopardize your firm’s 8(a) eligibility

• Be sure to discuss any contemplated changes with your BDS before you do anything or you might lose your certification.

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NJDO 8(a)BD STAFF

Richard G. Zilg – Assistant District Director 973-645-2531 [email protected]

Sanford Gerber – Business Development Specialist 973-645-3729 [email protected]

Richard Pettorossi – Business Development Specialist 973-645-2192 [email protected]

Rosa M. Rodriguez – Business Development Specialist 973-645-6249

[email protected] Joeann Shaeffers - Business Development Specialist 973-645-4651

[email protected]

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