subject: How Do You Prove You Are Superman [print this page] I will often meet with prospects who was inquire about the 8(a) Business Development Program but are new in business. I mention to them what a speaker at an SBA seminar said when asked about the 2-Year Waiver. He said, in order to get a waiver you have to prove you're Superman. I thought it funny at the time, but after talking with prospects about the same issue, I decided to delve deeper to uncover the mysteries behind the 2-Year Waiver.
Surely the SBA made a 2-Year Waiver for a reason, there are probably companies that form or spin off from others who have the "potential for success" that SBA is concerned with for applicants in the 8(a) Business Development Program. But it can't be impossible, right. There is only ONE Superman, so no one else can prove themselves to be Superman. There could, however, be a lot of businesses out there that are Super-Businesses and warrant a 2-Year Waiver. So let's dive into the Code and see what we unearth, shall we? As an aside, when I say "Code", I am referring to the Electronic Code of Federal Regulations (eCFR), not the Pirate Code[1] as laid down by Morgan and Bartholomew (If you are a fan of The Pirates of the Caribbean you get this, if not, you think I'm a little nuts.) But anyway, I digress. [1]http://en.wikipedia.org/wiki/Pirate_code - . If you are a fan of The Pirates of the Caribbean, check out this Wiki site for a bit of history on the Pirate code, there may be a bit of truth in the Hollywood legend!
The eCFR 124.107 defines "potential for success" and outlines five conditions for a firm to qualify for the 2-Year Waiver. The steps are to ensure that the firm has: 1) the management experience, 2) the technical expertise, 3) the capital, 4) the prior performance and 5) the infrastructure to perform on a contract. The aforementioned is no different, really, than what SBA is trying to determine for any applicant for the 8(a) Program, the only difference is each of these points will be explicitly addressed when requesting a 2-Year Waiver.
If you are tackling the certification process yourself and have signed up for my free CD and White Paper, you have links in the Paper that direct you to the eCFR. If not, I encourage you to visit my website and sign up so you have those source links. My recommendation, if you are doing it yourself, is that you don't cut corners. Make sure you have specifics, i.e. Dollars, numbers, quantifiable data, to support each of the five conditions. Just as in any situation, the more facts you have to support your position, the more likely you are to get the desired end result. And remember, if you'd rather outsource the process, then feel free to contact us for more information.
So, the moral is this: If your business has not passed the two year mark, but you are actively working contracts and have the management and technical experience to warrant a waiver, then go for it! The worst the SBA can say is "No" and at the 2 year mark, you'll try again.
