Despite various impacts to SBA’s 8(a) Business Development Program–both quite recently and over the last couple years (which you can read about here and here, and even listen to me talk about here)–this “golden child” of SBA’s socioeconomic programs remains alive and well. And it is still one of the most lucrative and sought after SBA certifications out there. So, eligible contractors may be quite happy to hear, even during this most recent government shutdown, the 8(a) application portal remains up and running. In fact, given the current “pause” to other government contracting functions and filing portals, there may never be a better time than right now to work on those 8(a) applications. That said, anecdotally, we at SmallGovCon have been hearing from some 8(a) applicants about recent updates to the 8(a) application process and submission portal that we want to share with our readers via this two part blog.
Ironically, one of the updates we’ve been hearing about anecdotally is that 8(a) applicants will no longer be able to delay submission of application documents once they start their applications (the subject of this Part I). But the other (and the subject of Part II) regards delays in SBA’s final application decisions, despite its regulatory 90-day final decision timeframe. Keep an eye out for Part II to learn more about the latter update.
New Application Countdown Timer
Historically, 8(a) applicants could start their application at any time they wanted and just leisurely upload the required documents and provide the necessary information as such became available. And unfortunately, the flexibility in that regard was something 8(a) applicants were quite fond of in our experience.
Sure, one can find 8(a) document checklists and other application information online prior to applying. But SBA generally does not update those resources consistently–even when rules, policies, and application procedures themselves are updated and changed. Additionally, there are certain questions and document requests that only apply to certain applicants (i.e., those with a spouse involved in their company, with additional owners, and/or outside employment, etc.).
All this to say, knowing every single document and piece of information each specific 8(a) application will require has generally always been a challenge–making the option to start, save, and return to the 8(a) application at one’s convenience something most applicants have taken advantage of. But based on reports from recent 8(a) applicants we’ve worked with, it appears that this leisurely submission option is going away.
Now, SBA’s 8(a) application portal apparently starts a 60-day countdown clock for new applicants on the day they start their 8(a) application. And it appears applicants are required to submit and upload all of their required information and documentation within that timeframe. Along with the specific number of “Days Left” for the 8(a) application, the countdown timer apparently also includes the Application ID, the stage the application is currently in, and even, the specific date of “Expiration” (to ensure there is no confusion with how the daily countdown is implemented, I suppose). It appears on the application portal once the applicant starts their application as follows:
Unfortunately, we cannot confirm yet exactly what it will mean for applicants who fail to get all required information and documentation submitted by the deadline set by this new countdown timer. But (again, only anecdotally) we have heard that the consequence of not meeting this deadline is having to completely restart the application process. And the “Expiration” language displayed with the countdown certainly supports that understanding.
Of course, if an applicant hasn’t done a whole lot on their application yet–having to start all over may not be too much of a threat. But it certainly should be where the applicant has put in even half the required work to apply already.
For anyone who has already applied, is in the process of applying, or has done their research based on plans to apply to the 8(a) program, the gravity of this potential consequence likely goes without saying. These applications can take weeks, months, and even sometimes years to complete. Applicants have to collect all required and requested information and documents, make sure it is all accurate and current, and submit it all in SBA’s required format. In fact, this often includes requesting and collecting information and documentation from: the IRS; Secretary of State/state of formation; additional owners, members, stockholders, officers, managers; family members and spouses; etc. Suffice to say, the process can be very time consuming and tedious–and not one most applicants would be found of starting over.
So, even though a “new countdown timer” might sound like a fun new technological feature of SBA’s 8(a) application portal to some, it has the potential to significantly impact tons of (and maybe even all) 8(a) applicants and the entire 8(a) application process for the foreseeable future.
Importantly, we just want to reiterate that we have yet to see any guidance, input, or announcement from SBA regarding this new countdown timer and application deadline. SBA’s existing regulation, written policies, and guidance do not speak to any type of initial 8(a) application completion deadline. So, please keep in mind, the information in this Part I blog is still just anecdotal (and even makes a logical assumption or two).
But given the potential significance and impacts of this update to our 8(a) applicant readers and the entire 8(a) application process–we did not want to wait for SBA confirmation (that frankly, may never come) to share the information we do have available with all of you. Almost certainly just like you, however, we too have some outstanding questions regarding this updates.
Will this new application timer only apply to those starting 8(a) applications from here on out? Will it “kick-in”–or has it already “kicked in”–for any applications started prior to this point? If the latter, how will it work and where will the countdown start from–the date the application began, the date SBA applied the timer to new applications, or some other starting point? Will applications already beyond the 60-day clock automatically be “thrown out” and required to restart? And will SBA consider documentation to still be “current” if an application must restart or will updated documents be required?
Again, if you are anything like us, you probably have these and many more questions about it. Unfortunately, all I can do for you there is remind you to keep an eye out for updates on the topic. As we will, of course, provide you with any confirmation, clarification, and updates as such become available to us.
Questions about this post? Email us. Need legal assistance? Call us at 785-200-8919.
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