The 8(a) BD Full Package Review with Length of Time in Business Waiver Service is designed for clients that want to apply for 8(a) Certification and have not been in business two-years and need to prove the SBA “Potential for Success” requirement.
To apply for the 8(a) certification, you must have revenues in the name of the applicant business for the past twenty-four months. A Length of Time Waiver Request can help you waive that two year requirement.
There are five conditions for the waiver which allows you to become 8(a) certified without having been in business for the full two years. The SBA, however, will closely evaluate your waiver, so it is important that you fully address each of these five conditions.
- Management Experience – The SBA is looking for two areas of management experience. First, the SBA wants to know you have experience managing other people, and second, that you have experience managing a company. You do not need to have been a business owner in order for this to apply to you, rather you must have some sort of background which gives you the skills necessary to successfully own and operate a company. The SBA evaluators also verify you have experience in the industry that your company is in.
- Contract History – To be granted the Length of Time Waiver, your business must have at least one completed contract, and one current contract. A contract in SBA terms means clients in the industry you are applying in. These contracts do not need to be with the Federal government, they can be commercial contracts valuing at least $10,000. If you have had contracts in the past, but have not done any business in the past two years, you still must provide the SBA with a Length of Time Waiver Request in order to be certified.
- Business Plan – You must have a business plan and business goals. Show the SBA the goals of your business and how you are working to reach each of them, both long and short term. Be realistic, you don’t have to be above goal on each item; just show your plan on how to get there.
- Access to Capital – Next to Contract History, Access to Capital causes the most trouble for applicants. The SBA would like you to have 90 days of working capital for the business. The SBA will examine your cash flow statements and your sources of financing, such as owner investment capital, outside investment capital and lines of credit. Provide the SBA with enough proof to show that you will be able to maintain a viable business even if you are not paid on time by a client.
- Access to Equipment/Personnel – The final condition for the waiver is generally the easiest. The SBA wants to verify that once you win a contract, you are able to complete the contract based on the equipment and personnel that you either already have, or have access to. The SBA allows you to rent equipment and have a pool of applicants; you do not need to have everything already in place. The SBA wants to know that once you win a contract, you will need to be able to get the people and equipment you need within 30-60 days, if not sooner.
There are a number of traps and problems that can arise with the Length of Time Waiver Request; however they are approved every day. All you need to know is what the SBA is looking for, and to have your company in order.
The following service features are included in our 8(a) Length-of-Time in Business Waiver Service:
- IST will email or fax you our Length-of-Time in Business Waiver Information Package.
- IST will examine the Length-of-Time in Business Waiver Information Package received from the client and insure that all 5 required conditions have been met.
- IST will contact the client via email and telephone to discuss and obtain the missing information and/or data needed.
- IST will complete the 8(a) Length-of-Time in Business Waiver narrative, ensuring that it’s in conformance with SBA regulations.
- IST will transmit the prepared 8(a) Length-of-Time in Business Waiver package via Express mail delivery service or by email to the client.