# Presentation: 676815

##  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 **
**Failure to comply with submissions will result in program termination**

## 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**

## 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.) **

## 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**

## BUSINESS PLAN- SBA FORM 1010C

**13 CFR Part 124.402 **
**Given at orientation**

## 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**

## 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**

## 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**

## 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 **

## 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**

## 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 % |

## 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**

## 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 **

## 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**

## 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**

## 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**

## 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**

## 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**

## 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**

## 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**

## 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**

## 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.**

## NJDO 8(a)BD STAFF

**Richard G. Zilg – Assistant District Director 973-645-2531**
**	****	****	****  **_[richard.zilg@sba.gov](mailto:richard.zilg@sba.gov)_
**Sanford Gerber – Business Development Specialist 973-645-3729**
**	****	****	****  **_[sanford.gerber@sba.gov](mailto:sanford.gerber@sba.gov)_
**Richard Pettorossi – Business Development Specialist 973-645-2192**
**	****	****	****    **_[richard.pettorossi@sba.gov](mailto:richard.pettorossi@sba.gov)_
** ****	**
**Rosa M. Rodriguez – Business Development Specialist 973-645-6249**
**	****                          **_[rosa.rodriguez@sba.gov](mailto:rosa.rodriguez@sba.gov)_
** ****	**
**Joeann Shaeffers - Business Development Specialist 973-645-4651**
**	****         ****	****     **_[joeann.shaeffers@sba.gov](mailto:joeann.shaeffers@sba.gov)_

**   ****QUESTIONS??**