Apart from being a bloated bureaucracy and a problematic necessity, the government also has its merits. And this is regardless as to whether one accepts that premise or not: a treasure trove of grants, benefits, and potentially advantageous certifications await those who seek them. You just have to make the right efforts to meet the given requirements. Are you looking at 8(a) certification for your company? Business & Financial Solutions is the accounting firm to help push it through.
The 8(A) program is not well known in the general public. But it’s certainly of great significance. It was set up essentially as a vehicle to help demographics that are, and have been, disproportionately disadvantaged. One of the main purposes of the 8(a) designation is to benefit small businesses owned, at least in majority, by minorities. There are several ways that the program does this. And most of them have to do with government contracts. 8(A) registrants can receive sole-source contracts . And by doing so, they can effectively bypass the competitive and difficult process of bidding for government contracts much of the time. Obtaining government contracts, can be particularly useful in areas. These are close to the headquarters of various government agencies such as Montgomery County, MD.
8(A) firms also enjoy the benefit of being to form joint ventures to bid on contracts. This makes it more feasible for the firm to work with larger prime contracts which normally can be difficult to attain or fulfill for a small firm. Alright, so you own or work for a business that is owned by a member of a minority group or socially or economically disadvantaged group. We’ve seen that this program has grown in popularity in recent years. You know your company can benefit from the myriad benefits. What are the requirements? It’s not as simple as signing up…
–You need to be a small business (the SBA—Small Business Administration—gets to decide the parameters of ‘Small Business’) & you must be an American citizen in good standing and showing good character.
-You (the owner) must meet the SBA’s criteria for a socially and economically disadvantaged group. This includes individuals who belong to, or identify with, groups that have been subjected to racial, cultural, or ethnic prejudice. You have to be able to demonstrate that this has affected you and has chronically hindered your ability to thrive in the business world; this can include everything from outright discrimination to social pressures.
-An 8(A) firm can’t have more than 10% ownership in any other 8(A) firm.
-The business needs to show that it is viable and has success potential—this may involve having a business plan crafted.
-Once an 8(A) firm you’ll be subject to reviews and systematic analysis by the SBA.
This list of requirements isn’t exhaustive but it’s a good sample of the kinds of the SBA is looking for. The purpose of the program isn’t to provide a free ride to people who are already very wealthy and successful, but to give a hand-up to small businesses that face hardship but have shown great potential for success and integrity.
The reason why Business and Financial Solutions offers services related to helping our clients navigate through the complexities if SBA rules, entity structures, and federal legislation is because we want to help make it easier for the small business to focus on their business. If you’d like to learn more about the 8(A) program, how you can get certified, and how a dynamic accounting firm can help you get started, give us a call today at 855-557-2222
Or email firstname.lastname@example.org
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