Business & Financial Solutions
Business & Financial Solutions
TAX HELP SERVICE AND PREPARATION
(855) 557-2222
Get Started Now!
  • twitter
  • facebook
  • linkedin
  • Home
  • What We Do
    • Business Start-ups
    • Accounting and Bookkeeping Services
    • Tax Services
    • Tax Help
    • Specialized Tax Solutions
    • Business Management
    • Specialized Accounting Services
    • Non Profit Organizations
    • Offer In Compromise
    • Professional Content & Business Plan Writers
    • Construction Accounting Firm
    • Accounting & Bookkeeping for Restaurants
    • Bookkeeping Services Assisted Living
    • Accountants For Smart Real Estate Professionals
    • Bookkeeping Services for Law Firms
  • About Us
  • Locations
    • Frederick Maryland Office
      • 10 Things Every Frederick Business Owner Should Know
      • 12 Tax Tips For People Living In Frederick Maryland
    • Rockville Maryland Office
      • Rockville Maryland Name One Of The Best Places To Live
      • Top 10 Things To Do In Rockville Maryland
    • McLean Virginia Office
      • 10 Things Every Business Owner Should Know About McLean Va
      • What is Tysons Corner Mall, How Can It Help Your Business
  • Contact Us
    • Careers
  • FAQ
    • How To Track The Status Of Your IRS Refund – Where Is My Refund?
    • Ask A CPA, Top Ten Questions People Ask An Accountant
  • Blog
  • Client Portal

Should (and can) my Business get 8(a) Certified?

You may have asked yourself if your business qualifies for 8(a) certification. You may not know what the basic parameters are. Or you are just curious about what 8(a) certification. Whether you’re on the cusp of making an important move for your organization, or this is the first time you’ve even heard of the designation, you should be equipped with a good understanding. Read on. First, are you a minority-owned business? Let’s see.

The 8(a) ‘Business Development Program‘ helps small, disadvantaged businesses compete in the marketplace. The purpose of the program is to offer a useful tool and assistance with businesses. But this help is only available to those that have traditionally been at a disadvantage in the American marketplace. What is the purpose? According to https://www.sba.gov/content/about-8a-business-development-program, where the SBA (Small Business Administration) goes into some finer details about this often-obscure government program, the point is to help “socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. The program helps thousands of aspiring entrepreneurs gain a foothold in government contracting.”

Sound good! But is it a little vague? The benefits of becoming 8(a) certified are actually rather interesting. Here are just a few of them…

Sole Sourcing

You have the ability to win sole source government contracts without a bid or competition is gigantic. These are often large. This is one reason that a disproportionately large percentage of the fastest growing businesses in the United States is 8(a) certified in recent year. 8(a) firms are selected first and have less competition to deal with when finding government contracts.

Federal Dollars

In 2011, an average of $3,000,000 was spent per 8(a) certified firm! It’s easier for federal clients to purchase your product. This is because 8(a) contracts cannot be protested. And they have less red tape overall. Less paperwork means less hassle for customers. And that means more money for you.

Joint Venture (Mentor Protégé)

8(a) firms have the latitude to partner with large successful firms. They often benefit from their assistance in achieving contract goals. Of course, the mentor is incentivized too. They have access to certain federal government contracts after entering into a joint-venture arrangement with the protégé. Granted, the (business development) Mentor-Protégé program has its own caveats and nuances. But it’s an important boon that you may be able to utilize if you become 8(a) certified.

Efficiency

On average, 8(a) contracts are quicker to be awarded than contracts gained by other methods. This means you can get to work, earn money for your business, and enjoy that critical growth! The advantages are even greater than this shortlist. Though the basic premise is that you’ll get some preferential treatment when it comes to procuring government contract work. And all while cutting through red tape. But am I even eligible?

We’ve scratched the surface on why it’s both useful and financially advantageous to get certified. But discovering whether it’s worth it or even possible for you might be a more complicated story. Look at it from SBA’s perspective. They’re trying to benefit people who need the benefit based on actual societal disadvantages. For example; are you a United States citizen who is: Hispanic, Asian, Black, Native American? Or has your ethnic background experienced chronic discrimination based on gender, culture, race, veteran status, or disability? If you can prove it to the SBA then you just met one important criterion for getting certified. But it’s more than this. Because other factors are accounted for and have to be verified. Your wealth is another such factor. If your personal net worth is over $250k, it’s likely you don’t have a shot at getting that coveted certification.

Requirements

But let’s boil down the 3 main requirements to get an SBA 8(a) certification: First, you have owned a small business by the SBA’s standards. (including those we already mentioned). Second, you need to be unconditionally owned or controlled by one or more disadvantaged individuals. (with a few caveats). That’s right. You can’t just employ individuals who qualify. You need to be one of these people. Finally, you need to show that your organization is potentially effective at garnering success. Basically, they want to see that what you’re doing is viable as a business. Therefore, they don’t throw good money after bad.

Recent Posts

  • IRS Taxpayer Rights What Are They, What Is The Right To Finality
  • Temporary Change To Business Meal Deduction For 2021 & 2022
  • How Seniors Can Use Required Minimum Distribution (RMDs) In IRA For Charity & Lower Taxes
  • Short Term Capital Gains Tax On Crypto You Bought & Sold in 2021
  • 7 Important Things Taxpayers Should Consider When Selling a House

Archives

  • October 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • February 2021
  • January 2021
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • March 2020
  • December 2019
  • November 2019
  • August 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • May 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • February 2015
  • January 2015
  • December 2014
  • October 2014
  • August 2014
  • July 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014

Office Locations In Maryland

5100 Buckeystown Pike Ste 250,
Frederick, MD 21704

17 W Jefferson St Ste 007,
Rockville, MD 20850

Office Location In Virginia

7918 Jones Branch Drive, Ste 405,
Tysons VA 22102

About BFS

Visit us in McLean Virginia, Frederick or Rockville, Maryland (Washington DC Metro Area)

Phone toll free: (855) 557-2222
Fax: (240) 297-1054
E-mail: info@bfswebsite.com

Business & Financial Solutions is a tax and accounting CPA firm. Our offices are located in Fairfax County, VA and Montgomery and Frederick Counties, MD. Our company is highly motivated in helping individuals and companies (private and non-profit) become successful in start-ups. BFS offers assistance with ongoing small to mid-size business management, consulting, accounting and a variety of tax services.

Maryland, Virginia, Washington DC
SiteLock
back up
© Copyright 2022 Business & Financial Solutions