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8(a) BUSINESS DEVELOPMENT PROGRAM REPORTING REQUIREMENTS

8(a) BUSINESS DEVELOPMENT PROGRAM REPORTING REQUIREMENTS. 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

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8(a) BUSINESS DEVELOPMENT PROGRAM REPORTING REQUIREMENTS

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  1. 8(a) BUSINESS DEVELOPMENT PROGRAM REPORTING REQUIREMENTS

  2. 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

  3. 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

  4. 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.)

  5. 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

  6. BUSINESS PLAN- SBA FORM 1010C • 13 CFR Part 124.402 • Given at orientation

  7. 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

  8. FINANCIALSTATEMENTS • 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

  9. FINANCIALSTATEMENTS (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

  10. 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

  11. 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

  12. ANNUAL REVIEW REQUIREMENTS (cont'd) COMPETIVE BUSINESS MIX

  13. ANNUAL REVIEW REQUIREMENTS (cont'd) Excessive withdrawals, are defined as those withdrawals during any one fiscal year that exceed: • $150,000 for participants with sales up to $1,000,000 • $200,000 for participants with sales between $1,000,000 and $2,000,000 • $300,000 for participants with sales over $2,000,000

  14. ANNUAL REVIEW REQUIREMENTS (cont'd) • 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

  15. ANNUAL REVIEWS REQUIREMENTS (cont'd) A “withdrawal” includes, but is not limited to: • Officer’s salary • Cash dividends • Distributions in excess of amounts needed to pay S Corporation taxes • Cash withdrawals • Property withdrawals • Bonuses • Rents • Loans • 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

  16. 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

  17. 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

  18. WHAT IS TERMINATION? (cont'd) • 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

  19. WHAT IS TERMINATION? (cont'd) • 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

  20. 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

  21. 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

  22. 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

  23. 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.

  24. NJDO 8(a)BD STAFF Richard G. Zilg – Assistant District Director 973-645-2531 richard.zilg@sba.gov Sanford Gerber – Business Development Specialist 973-645-3729 sanford.gerber@sba.gov Richard Pettorossi – Business Development Specialist 973-645-2192 richard.pettorossi@sba.gov Rosa M. Rodriguez – Business Development Specialist 973-645-6249 rosa.rodriguez@sba.gov Joeann Shaeffers - Business Development Specialist 973-645-4651 joeann.shaeffers@sba.gov

  25. QUESTIONS??

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