SBA 8(a) certification (or any other certification for that matter) is not a requirement for doing business with the federal government. The 8(a) program is a resource for small businesses seeking business development assistance. The program helps neutralize the playing field by allowing small businesses to compete for government contracts against similarly situated small businesses. In some cases, certified companies can win contracts without competing. Other program benefits include tutoring, procurement assistance, training and other assistance. However, if you do not qualify for SBA 8(a) or other certifications, you are not precluded from bidding for government contracts.

No. Getting your business certified is just one step toward obtaining a government contract. Once you get certified, you must market your business and your products to the agencies that purchase your service or product. In many cases, we advise our clients not to get certified because they are not in a position to benefit from the 8(a) Business Development Program either because they are too small, too inexperienced or simply do not have the financial strength to undertake a marketing program effectively.

It depends. Once the SBA's regional Division of Certification and Program Eligibility (DPCE) determines that your application is complete, a final decision regarding 8 (a) eligibility is required to be made within 90 days. However, this does not take into account the amount of time it will take you to go through all the steps to complete your certification application, such as determining your NAICS code, obtaining your DUNS number, registering with the System for Award Management (SAM - formerly known as Central Contractor Record- CCR), collect your documents, complete the application, sign and notarize them when necessary, etc., etc., etc. We have literally met people who have put things off for years because they just didn't know where to start. We have also seen people spend months dealing with the submission of incomplete applications and the questions that come up.

If you prepare your application yourself, it shouldn’t cost you anything other than your time and effort. However, if you hire a consultant to prepare your application, it can cost you several thousand dollars. At DBE Direct, although we are a law and accounting firm, our prices are competitive with many of the consultants you will find. Besides, our knowledge of the 8(a) program includes one added benefit when retaining us to prepare your application: our price includes a free appeal in the event that your application is denied. Since appeals require much more work on our part, it is our policy not to take on any client seeking certification unless we determine it will be done successfully or we believe we can successfully appeal a potential denial.

The rules governing the program require you to be in business for more than two years. You can obtain a waiver if you meet certain criteria. However, we often counsel our clients not to get a two year waiver. First, they often don’t qualify. Second, many times if the business is less than two-years old the company is not in the position to take full advantage of the 8(a) program. Many times we help our clients determine if other alternatives exist that allow them to participate in government contract opportunities without getting the 8(a) certification. This may mean getting the company certified through another program or helping the client team or subcontract with other companies.

It may if the state or local government or private corporation accepts the 8(a) certification as a tool to meet its small business contracting goals. However, in our experience, 8(a) certification is really only accepted at the federal level by those agencies that use the certification to help them meet their small business contracting goal. If your goal is to obtain business at the state or local level or from private corporations there may be other certifications more suitable to helping you reach your goal. At DBE Direct, we pride ourselves on our knowledge of small business certifications and helping our clients choose and apply for the certification that most closely aligns with their goals.

In our experience, no. Agencies will not award a contract to your company solely because it is 8(a) certified, women-owned or whatever. Agencies hire firms that provide goods and/or services that they need. If you are 8(a) certified, women or veteran-owned then you also provide the additionally benefit of helping that agency meet its small business contracting goals, but they won’t award a contract to your firm for that reason alone.

This is a tricky question. First, the 8(a) certification program, like most small business certification programs, require that the company be owned and controlled by the person who qualifies the business as an 8(a) firm. Simply handing over 51% ownership to your spouse or anyone else does not give them control of the company as shown in the company’s financial and business records. From time to time we have assisted individuals who have legitimately transferred their business to their spouse or another individual. We have helped the new owners establish control of the company and meet the requirements to obtain certification. Each case is different. If you are in this situation we strongly urge to contact us.

Yes. The SBA 8(a) Business Development program only lasts 9 years. After 9 years the firm graduates from the program and is no longer able to participate as an 8(a) firm. However, your firm can also face early termination or early graduation from the 8(a) program. You will know that a determination to terminate or early graduate your firm has been made by the SBA’s Director, Office of Business Development when you receive a Notification of Early Graduation or Termination. Once you receive the Notice you have 45 days to appeal the termination or graduation. If you do not appeal, the termination or graduation becomes the SBA’s final decision, effective on the forty-fifth day. We urge any business facing early termination or early graduation to contact us at DBE Direct to assist you with your appeal.