Complying With SBA 8a Annual Review Requirements

Failure to Meet SBA 8a Program Annual Requirements Can Get You Terminated from the Program.

Small businesses often find themselves subject to the termination because of failure to comply with 8a Annual Review requirements. ‘This is a very strict requirement. Unless participants get an expressed extension from the SBA, there is virtually no excuse for failure to submit the annual requirements.

The SBA has an affirmative responsibility under the Small Business Act to ensure that only eligible business concerns are admitted into—and remain in— the 8(a) BD program.

This ensures that public funds are properly administered and that the benefits of the 8(a) BD program are limited to those small businesses owned, controlled, and managed by socially and economically disadvantaged individuals.

Requests for documents under the SBA 8a Program Annual Requirements are set in stone. For example, a pending outcome of a divorce or civil case will not be grounds to postpone the annual requirement. Read about bait and switch laws.

Financial documents is another reason why the SBA may terminate a small business due to non-compliance with the annual requirements rule.

• The SBA may choose to send warning letters. It is not required to do so.
• A letter of intent to terminate should be an eye-opener for small businesses to be on notice that the matter is serious.

SBA has the leverage to terminate you from the 8a Program: The SBA Office of Hearings and Appeal gives the SBA great latitude to terminate small businesses from the 8a Certification Program. If the SBA sends you a notice, by all means, comply. The only other alternative is to get a written extension.

Courts have frequently found that failure to respond to requests for SBA 8a Program Annual requirements, constitutes a pattern of failure under 13 C.F.R. § 124.303(a)(7) and is good cause for termination.  See JA Harris Trucking, Inc., SBA No. BDPT-463 (2013); Taycom Bus. Solutions, Inc., SBA No. BDP-228 (holding that Petitioner’s failure to provide annual review documents in response to two requests and a letter of intent to terminate constituted a pattern of failure). Find out more about Termination From the 8(a) Program.

Speak to an Attorney & Get a Free Initial Consultation

If you need help meeting the strict guidelines for complying with SBA 8a Annual Review requirements, call Watson & Associates’ 8(a) Certification lawyers at 1-866-601-5518.