3 Tips for VetBiz Verification

Below are 3 VetBiz Certification issues that we see on a regular basis.  If you can avoid these three issues, your VA VetBiz application will go through the verification process much faster and with a positive outcome.

1. Full-time Devotion to the Applicant Concern

The 51% Veteran or Service-Disabled Veteran owner(s) should devote full time to the applicant concern during normal operating hours of similar businesses.  In addition, the veteran owners should not have any other outside employment that could take away from their day-to-day management of the applicant firm.  Make sure resumes and LinkedIn profiles are up to date with current positions and previous employment has ended.  Any Veterans with outside employment will face many questions from the CVE which will most likely end in denial.

How to determine your Adjusted Net Worth

The applicant(s) for 8(a) Certification must have an Adjusted Net Worth of less than $250,000 and total assets of less than $4,000,000 to be considered economically disadvantaged by the SBA.

What is the definition of Adjusted Net Worth?

Adjusted Net Worth = Personal Assets – Liabilities – [Equity in primary residence + ownership interest in business + IRA/Other Retirement Accounts subject to a penalty for early withdrawal].

Additionally, Total Assets = Personal Assets – IRA/Other Retirement Accounts subject to a penalty for early withdrawal.

What happens after you submit your Hubzone Application

The office of the Hubzone Program uses a three-level review process for all Hubzone applications and supporting documentation to ensure that it only admits eligible firms into the program. Each level of review evaluates whether a firm should be certified or declined entry into the Hubzone program. First level analysts review supporting documents including owners’ proof of citizenship, principal office leases, payroll, employees’ driver’s licenses, and utility bills. The Hubzone program director or deputy director makes the final determination to certify or decline the applicant firm. See below for a summary of the steps in the Hubzone certification process.

8(a) Program Two Year Waiver Requirements

Your business must possess reasonable prospects for success in competing in the private sector if admitted to the 8(a) program.

To do so, it must be in business in its primary industry classification (NAICS code) for at least two full years (24 months) immediately prior to the date of its 8(a) application and be able to provide business tax returns for each of the two previous tax years that show sufficient operating revenues earned within the primary industry (NAICS code) in which the applicant is seeking 8(a) certification for.

Tips on selecting the right consultant to prepare your 8a, HUBZone or VetBiz Application

Pick up the phone. Speak to the actual person who will be preparing your application.

You should be able to call and speak directly to the individual who will be responsible for preparing your application. At Cloveer, you can call and speak to the employee who will be responsible for preparing your application. They will answer any of your questions and let you know whether or not you are eligible to become certified into one of these programs at no cost.

The 8(a) Social Disadvantaged Narrative Explained

Who is a Socially Disadvantaged Individual? 

For purposes of the 8(a) Program, socially disadvantaged individuals are those who have been subjected to racial, ethnic prejudice or cultural bias within the American society because of their identities as members of groups and without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control.

8(a) Application Contract Listings Breakdown Tips

When you apply for the 8(a) Program through certify.sba.gov the SBA will require that you provide a detailed listing of your contracts* for the last 12 months.

Tip: We also suggest that you take a look at this breakdown for the last completed (e.g., 2018, 2017 and 2016) three years too. The SBA is likely to request this additional information to look at the totality of your economic dependency.

Here is the message you will likely receive from the SBA if you fail to provide the last three years of information:

The chart associated with the Certify application does not ask for this level of detail, and is not sufficient in addressing this query.