In Case You Missed The Rule Changes That Took Place on March 14 2011 To The 8(a) Program
These rules open up the 8(a) Program by removing Retirement Accounts and other items from the Economic Disadvantage Equation. Retirement accounts no-longer count towards the $250,000 threshold and are now excluded with the equity in your primary residence as well as the value of your business.
Call us for a free consultation on how these new regulations will affect your application even if you have been previously told you were not a good candidate 513-843-4288.
The New Rules Include the Following Provisions:
Joint Ventures – requiring that the 8(a) firm must perform 40 percent of the work of each 8(a) joint venture contact that is awarded, including those awarded under a Mentor/Protégé agreement, to ensure that these companies are able to build capacity;
Economic Disadvantage – providing more clarification on factors that determine economic disadvantage as it relates to total assets, gross income, retirement accounts and a spouse of an 8(a) company owner when determining the owner’s ability to access capital and credit; Mentor – Protégé Program – adding consequences for a mentor who does not provide assistance to their protégé, ranging from stop-work order to debarment. Ownership and Control Requirements – providing flexibility on whether to admit 8(a) program companies owned by individuals with immediate family members who are owners of current and former 8(a) participants; Tribally-Owned Firms – requiring firms owned by tribes, Alaska Native Corporations, Native Hawaiian Organizations and Community Development Corporations to report benefits flowing back to their respective communities; Excessive Withdrawals – amending regulations on what amount is considered excessive as a basis for termination or early graduation from the 8(a) program; and Business Size for Primary Industry – requiring that a firm’s size status remain small for its primary industry code during its participation in the 8(a)program.
The 8(a) Program provided over $11 Billion dollars in contracts to 8(a) Certification holders in 2010. Give us a call at 513-843-4288