When an 8(a) BD program participant’s eligibility relies upon a disadvantaged individual who is subsequently called to active duty in the U.S.An individual will not be considered economically disadvantaged if the fair market value of their assets exceeds $4 million at the time of the 8(a) BD application ($6 million for continued eligibility) and.The personal income threshold will now be $250,000 for purposes of initial qualification for the 8(a) BD program, and $350,000 for continued eligibility.Further, SBA will consider a spouse’s financial condition only if he or she plays a role in the business or has provided financial or other support In evaluating economic disadvantage, SBA will consider property that is legally in the name of one spouse to be wholly that spouse’s property, even if the couple resides in a community property state.Individuals claiming social and economic disadvantage will now be required to reside in the United States.A participant may now be terminated from the 8(a) BD program if an individual owner exceeds any of the applicable economic thresholds or if the participant violates the rule against excessive withdrawals.Funds invested in certain retirement accounts will now be excluded from the SBA’s calculation of an individual’s net worth for purposes of qualification for the 8(a) BD program.As a whole, the amendments suggest that SBA intends to eliminate manipulation and abuse of the 8(a) BD and mentor/protégé programs by small and large businesses alike. The new rules affect SBA’s 8(a) Business Development (“BD”) program, SBA’s mentor/protégé program, and its joint venture regulations. Sweeping changes to Small Business Administration (“SBA”) regulations will go into effect on March 14, 2011.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |