The Small Business Administration (SBA) established the 8(a) Business Development Program to lend a helping hand to small businesses by providing them with access to federal and private procurement markets, management, technical, and financial assistance. Membership lasts nine years with a one-time eligibility restriction. Given this timeline, it is important for small businesses to understand SBA 8(a) program compliance requirements, two of which relate to reporting. Let’s discuss these in greater detail.
1. SBA 8(a) Compliance Reporting Requirement: Annual Financial Statements
Participants are required to file annual financial statements prepared by an independent CPA. The type of financial statement, as well as the submission time frame, varies according to the company’s sales. The criteria for each statement type are as follows:
- Participants with more than $10,000,000 in annual gross receipts must submit audited annual financial statements within 120 days after the close of the company’s fiscal year.
- Participants with gross annual receipts totaling between $2,000,000 and $10,000,000 must submit reviewed annual financial statements within 90 days after the close of the company’s fiscal year.
- Participants with less than $2,000,000 in gross annual receipts must provide an annual in-house or compiled financial statement within 90 days after the close of the company’s fiscal year.
2. SBA 8(a) Compliance Reporting Requirement: Annual Update
Under CFR 124.112, participants must file SBA Form 1450, an 8(a) Annual Update form based on the participant’s annual program year. Members must disclose certain company data to remain in the program, including net worth, fair market value of all assets, personal income, and excessive withdrawal limitations.
SBA 8(a) Program Compliance Help is Here – Thanks to CRI
CRI’s government contracting CPAs can help your business maintain 8(a) compliance. From compiling, auditing, or reviewing financial statements to DCAA compliant software, we’re here to lend a helping hand.