Maria Asuelimen teaches about the 8(a) certification process. Learn about federal contracting, doing business with the government, tips from prime contractors, and more.

1. SBA 8(a) Certification for
Veteran & Minority Owned Businesses
Maria Asuelimen | AMA Consulting | Managing Partner

2. Becoming a Federal Contractor
Small Business Administration (SBA) manages certification for
the US Government
 Establish your firm’s corporate qualifications in private
sector or as a subcontractor
 Research agencies to ensure that government buys what
you sell
 Obtain a DUNS number www.dnd.com
 Register your business with SAM www.sam.gov
 Create marketing materials: Website, Capability
Statements and Briefings, Business Cards, Brochures
 Get certified
 Win Work and Perform Excellently!!!

3. SBA Has 3 Core Certification Programs
• 8(a) Business Development
• Woman Owned Small Business (WOSB).
Economically Disadvantaged Woman Owned
Small Business (EDWOSB)
• HUB Zone Empowerment Contracting
Program

4. The 8(a) Business Development Program
Benefits
• Technical Assistance and Trainings
• Networking opportunities
• Sole-source contracts $4mil/$6.5mil
• Mentor/ Protégés & JVs
– Financial
– Technical
– Contracting

5. U.S. Small Business Administration’s
8(a) Certification
• An applicant or Participant must be at least 51 percent
unconditionally and directly owned by one or more
socially and economically disadvantaged individuals who
are citizens of the United States, except for concerns
owned by Indian tribes, Alaska Native Corporations,
Native Hawaiian Organizations, or Community
Development Corporations (CDCs). See §124.3 for
definition of unconditional ownership; and §§124.109,
124.110, and 124.111, respectively, for special ownership
requirements for concerns owned by Indian tribes, ANCs,
Native Hawaiian Organizations, and CDCs.

6. 8(a) Requirements
• United States Citizen
• Business Must be small per SBA’s Size Standard
• Social & Economically Disadvantaged
• The applicant individual must
– Own unconditionally at least 51% of concern
– Control & Manage concern on fulltime basis
– Good character: not eligible if debarred, suspended, arrested, on
parole, or probation,
– Have proven skills and experience
– Have two (2) years full-time business history in primary industry
classification with tax returns
– Must meet SBA’s critical & broadly defined “Factors for Success”
Newly Enforced Criteria

7. U.S. CITIZENSHIP
Applicants not born in the U.S. must provide
documentation to show that they are U.S. citizens.
-Certificate of Naturalization
Or
- U. S. Passport

8. Firms, including affiliates, must be small based on the
applicant firm’s primary NAICS Code.
• Size is determined either by:
average 3 years revenues, or
# of employees (manufacturers, dealers, wholesalers)
• See 13 CFR 121 Size Regulations or visit our website:
www.sba.gov/size.
Size

9. Socially Disadvantaged
Individuals are persons who have been subjected to racial or ethnic
prejudice or cultural bias because of their identities as members of groups
without regard to individual qualities.
Members of these groups are presumed by SBA to be socially disadvantaged
• African American
• Asian Pacific American
• Hispanic American (includes Spanish and Portuguese descent)
• Native American
• Subcontinent Asian American

10. Persons not members of designated groups
must:
• Establish their case by preponderance of the evidence;
• The disadvantage may stem from color, ethnic origin, gender,
physical handicap, long term environmental isolation, or other
similar causes.
• The applicant must have personally suffered disadvantage in
the United States;
• The disadvantage must be substantial or chronic;
• The discrimination must have negatively impacted on
business advancement.

11. Essay on Economic Disadvantage
1. Family History
2. Education History
3. Employment History
4. Company Ownership
5. Company History
6. Conclusion

12. Economically Disadvantaged
Individuals are economically disadvantaged
persons whose ability to compete in the
free enterprise system has been
impaired due to diminished
capital and credit.

13. Economic Disadvantage
• Personal Net Worth: After excluding the individual’s equity in the firm and
equity in the primary residence, net worth may not exceed $250,000
• Salary: average salary for the last 3 years may not exceed $250,000
• Total Assets: all assets may not exceed $4million
NET WORTH
Less equity in primary residence
Less equity in business
Equals adjusted net worth
(which must not exceed $250,000)
*When married, each spouse to show each individual’s joint or community property
shares and separate property assets, liabilities & income

14. Potential for Success Factors
 Proof of two years operation in the firm’s primary industry as verified by
revenues reported in business tax returns for the two previous tax years, NOT
the applicant’s anniversary date.
 Financial capability: sufficient capitalization, financial performance, bonding
capacity, manageable debts.
 Managerial and Technical capability: performance on previous contracts, firm
has the necessary personnel, licenses, certifications, facilities, prior experience.
 Management capability: Education, experience and training of CEO and other
managers, magnitude and complexity of past/current jobs, management systems.
 Qualifications for ability to perform on Federal contracts: relevant contracting
experience, ability to meet Federal procurement policies.

15. • Past Performance w/o “Affiliation” (Ref 13
CFR 124.106 (g) (4)
• Prior Government Contracting Experience
• Profitability of Operations
• Positive Working Capital (CA minus CL)
• Positive Net Worth (TA minus TL)
• Strong Cash Flow or Financing Sources
• Reference 13 CFR 124.101-108

16. The 8(a) BD Application Requirements
Forms include:
•1010- Individual and Business.
•1623- Certification regarding debarment, suspension and other
responsibility matters
•1790- Report on compensation paid for services in connection with
getting federal contracts
•912 – Statement of personal history
•413 –Personal financial statement (Must be completed by all owners
with over 10% ownership and spouses of married owners)
•4506T _ Request for tax transcript
Visit us at www.sba.gov 16

17. Required Supporting Documents
The processing center will, at the minimum, request the following regarding each
alleged affiliate:
a. 3 years of financials and interim financial statements no older than 90 days;
b. 3 years of business and personal tax returns, including all schedules,
attachments, and proof of tax paid;
c. If the firm is a corp:
- two years shareholder meeting minutes showing the election of the board
of directors;
- two years board of director meeting minutes showing the election of the
officers;
- stock certs and ledger; articles of incorporation, bylaws
d. If the firm is a LLC:
- articles of organization, operating agreement, membership ledger
e. If the firm is a sole prop, provide:
- assumed/fictitious name registration.
f. If the firm is a partnership:
- partnership agreement;

18.  Corporations:
– Disadvantaged individuals must own at least 51% of each class of
voting stock and at least 51% of the aggregate of all outstanding
stock. (13 CFR § 124.105(d))
– Stock option plans for non-disadvantaged individuals will be
viewed as if they have been exercised. (13 CFR §124.105(e))
 All Businesses
 Certificate of good standing
 Copies of contracts, recommendation letter
 Narratives
 Documentation of all items listed on PFS

19. Good Character Requirement
Applicant Business must not have:
 Adverse information regarding possible criminal conduct by the applicant or
its principals.
 Violations of any SBA regulations.
 Debarred or suspended individuals or firms.
 Applicant firms and principals that lack business integrity as shown by an
indictment, guilty plea, or civil judgment.
 Any principal who is incarcerated or on parole or probation.
 Evidence that the firm knowingly submitted false information during the
application process.
 Any firm or any of its principals that fail to pay financial obligations to the
Federal Government.

20. Term of Participation
START = date of approval
Year 1
2 developmental
3 stage
4
Year 5
6 transitional
7 stage
8
9
Continuation in the program is dependent on the firm’s continuing eligibility
as a socially and economically disadvantaged owned/operated firm and
continued compliance with the 8(a)BD participation agreement.
* Exception: military reservists who are called to active duty may suspend
their participation in the program under certain circumstances.

21.  Ineligible businesses: brokers *; debarred or suspended persons or
concerns; nonprofit organizations. Franchises may be allowed
contingent upon SBA’s review of the franchise agreement.
 A business may participate only once. Even if ownership and control
has completely changed, firm may not re-apply.
 Any person who has used his/her disadvantaged status to qualify
another firm shall be regarded as non disadvantaged.
* A broker is a concern that adds no material value to an item being
supplied to procuring activity or which does not take ownership or
possession of or handle the item being procured with its own
equipment or facilities.
Ineligible Businesses

22. SBA’s “Waiver” Criteria for the Two (2) Year
Requirement:
1. Management experience
2. Technical expertise
3. Adequate Capital
4. Successful performance
5. Ability to perform on timely basis

23. Process of Application
 Create account in SBA GLS and complete all
required forms in BDMIS
 Compile supporting documents and print forms
and sign
 Mail Hard copy forms to processing center
Submit electronic forms in BDMIS
 Respond to SBA Inquiry
 Processing time is 90 days after receipt of
complete application

24. After Certification
 Complete form 1010c Business Plan
 Annual Review
 Regulatory Compliance: Excessive
withdrawals, financial statement, reporting
 Contract Compliance: 8(a) contract work share
 Relationship with District Office

25. • “MDOT” Certification
The Maryland DBE/MBE Programs
Maryland Department of Transportation

26.  Ensure only bona fide disadvantaged and minority-owned firms receive the
MBE/DBE/ACDBE certification.
 Prevent “front” or “pass-through” companies from competing as MBE/DBE/ACDBE
firms.
 Maintain the integrity of the Program by deterring fraud and abuse.
 Meet constitutional requirements associated with race and gender-based
affirmative action programs.
Check out the MBE/DBE Program Manual:
www. mdot.state.md.us/MBE_Program/Documents/2000_MBE_Manual.pdf
a Why Maryland Agencies Certify b

27. • Receive greater exposure to work opportunities on State, federal and
local government contracts.
• Market your firm as an MBE/DBE vendor to prime contractors.
• Actively participate in meeting public and private sector diversity
contracting goals.
• Assistance with Questions regarding the Certifications
at mbe@mdot.state.md.us
a Benefits of Certification b

28. • The Disadvantaged Business Enterprise
Program (DBE)
• The Minority Business Enterprise Program
(MBE)
These Certifications are Similar but have
Different Requirements
MD Has 2 Core Certification Program

29. • Businesses that are Non-Profit Organized to Promote the needs of the
physical and mentally handicapped population, For-Profit, Disabled
Individuals or Socially and Economically Disadvantaged Individuals
• United States Citizen or Lawfully Admitted Permanent Residence
• Own unconditionally at least 51% of concern and is
Disabled, Socially, or Economically Disadvantaged
• Owner Control and Manage concern on fulltime basis
• Business Must be Small per SBA’s Size Standard
• Individuals are presumed to be eligible is they African American,
Female, Hispanic American, Asian American, Native American, Alaskan
Native, a Non-Profit Organization, or Disabled.
Maryland DBE/MBE Requirements

30. DBE
You must be a For-Profit Business and have a
Personal Net Worth of Less than $1,320,000
MBE
You can be a For-Profit or Non-Profit and have
a Personal Net Worth of Less than $1,674,928
Major Difference in DBE vs MBE

31. M i n o r i t y S t a t u s
a Eligibility Standards b
Certain groups are presumed to be socially and economically
disadvantaged:
Women
African Americans
Hispanic Americans
Native Americans
Asian Pacific Americans
Subcontinent Asian Pacific Americans

32. a Eligibility Standards b
Ownership
• An MBE/DBE/ACDBE is a small business that is at
least 51% independently owned and controlled by one
or more socially and economically disadvantaged
individuals.
• Owner must be a U.S. citizen or permanent resident.
• Firm must be in good standing with the Maryland
Department of Assessments and Taxation.

33. Control
• Ownership must be real and substantial.
Minority owner(s) must have managerial and operational
control.
• Minority owner(s) must have technical expertise and
experience relating to specific NAICS Codes.
• Firms are certified in specific areas of work as defined by
the North American Industry Classification System (NAICS
Codes).
Visit www.census.gov/naics to learn
more about NAICS Codes.
a Eligibility Standards b

34. P e r s o n a l N e t W o r t h
PNW is the net value of the assets held by an
individual, and includes, if married, those assets
held jointly or as community property with spouse.
a Eligibility Standards b
•MBE Cap:
$1,674,928(adjusted annually)
•DBE Cap:
•$1,320,000

35. S i z e
All applicant firms must be “small.”
• Size standards are set by the U.S. Small Business
Administration (SBA) under Regulation 13 CFR Part 121.
• Size standards are determined by industry based on NAICS
Codes.
Visit SBA’s website for more information regarding size standards:
http://www.sba.gov/contractingopportunities/officials/size/index.html
a Eligibility Standards b

36. The certification process consists
of four steps:
(1) Application – Applicants must
submit an application along with all
applicable supporting documentation.
OMBE recommends completing the Uniform Certification Application for
consideration as both an MBE and DBE.
http://www.mdot.maryland.gov/MBE_Program/Application
a Certification Process b

37. (2) Investigation – An MBE Officer reviews the entire
application package then conducts an on-site
interview with the applicant(s), performs a job-site
visit (if applicable) and documents her/his findings
in a written report.
(3) Determination – MBE Advisory Committee
reviews the investigative report to evaluate
whether the applicant firm meets all program
requirements.
a Certification Process b

38. (4) Certification – The MBEAC Chairman issues a
certification letter and the firm is listed in MDOT’s
online directory of certified firms.
Once a complete application
package has been received,
it takes an average of 3-6
months to complete the
certification process.
a Certification Process b

39. • Certified firms are listed in MDOT’s online directory of MBE,
DBE and/or ACDBE Firms.
Visit www.mdot.maryland.gov
Select the Minority/Disadvantaged Business
Enterprise tab.
• Firms are recertified annually and may remain in the
program as long as they continue to meet the program
requirements.
• Certified firms are encouraged to request an Expansion of
Services with OMBE as their
products and services grow.
a Upon Receiving Certification b

40. Register on eMaryland Marketplace –
the State’s Internet-based procurement
system.
– Visit www.eMarylandMarketplace.com
Register with the Small Business Reserve Program – the State’s online, self-
certification program for small businesses.
– Visit www.dgs.maryland.gov
Know your competition – search MDOT’s online directory of certified firms
– Visit http://mbe.mdot.state.md.us/directory/search_select.asp
a Marketing & Business Development b

41. Contact MDOT’s
Office of Minority Business Enterprise
at any point during the certification process.
410-865-1269
mbe@mdot.state.md.us
OMBE staff members are available to conduct a preliminary review of your
application packet at MDOT Headquarters during regular business hours.
No appointment is necessary.
As you go through the certification
process…talk with the experts!

42. • Get Certified
• Start Small
• Don’t forget about sub-contracting opportunities
• Find a mentor with experience in this area
• Leverage available training
• Build relationships
Doing Business with the
Government

43. • Try, try, try again…then try again…
then try again…
• Do your homework.
• Don’t expect it to happen overnight.
• Be willing to start small.
• If you don’t get the work, ask why.
• When you get the work…SHINE!
a Tips from Prime Contractors b

44. • www.sbdchelp.org
• 301-934-7583

45. Certification Presenter
Maria Asuelimen
Managing Partner
AMA Consulting LLC
10104 Senate Drive. Suite 208
Lanham MD 20706
P. (301) 577-9300
F. (301) 577-9301
C. (240) 601-4205
www.amaconsultonline.com