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Feature Articles

  • 46th Annual Fairfax County Valor Awards
  • Accounting For Crypto Assets
  • Alabama Federal Judge Rules Corporate Transparency Act (CTA) Unconstitutional, Enforcement Halted
  • Megan McAtee Joins MillerMusmar CPAs as Audit Manager
  • Simplifying Depreciation Deductions for Business Vehicles in 2024
  • MillerMusmar CPAs Proudly Sponsors “Titans of the Toll Road: How Northern Virginia’s Space Economy is Transforming the Future” Event
  • Breaking: Temporary Suspension of CTA’s BOI Reporting Requirements
  • A Comprehensive Guide to Government Contract Accounting
  • Our New Secure Client Portal: CANOPY
  • BENEFICIAL OWNERSHIP REPORTING
  • MillerMusmar CPAs is proud to be Platinum Sponsor of Titans of the Toll Road
  • 45th Annual Valor Awards
  • Homebuilders Can Benefit from Expansion of Energy Efficient Home Credit
  • Six Steps to Banking Failure- Silicon Valley Bank (SVB) What You Should Do To Protect Your Money.
  • SBA RULE MODIFCATIONS UPDATE GOVERNNING 8A FIRMS
  • Taxability of Lawsuit Settlements
  • INFLATION REDUCTION ACT HIGHLIGHTS
  • Under legislation enacted by the 2022 General Assembly Virginia established a new elective pass-through entity (“PTE”) tax.
  • Tax Law Changes effective 2022
  • Don’t forget to factor 2022 cost-of-living adjustments into your year-end tax planning
  • SILVER MEDAL OF VALOR
  • AASHTO Overhead Rate Audits
  • SBA raises EIDL loan limit to $500,000
  • IRS Announces New Extended Tax Deadline for Individuals
  • Maryland Extends State Income Tax Filing Deadline to July 15th
  • Business Education Series: PPP Round Two – What You Need to Know
  • SBA Issues Extensive Final Rule Revising Several Small Business Contracting Regulations
  • 2020 depreciation limits for cars and trucks are issued
  • New Virginia Employment Law Update
  • Understanding the 2020 Coronavirus Relief Bill (the CARES Act)
  • FAQs About COBRA Insurance Coverage
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  • Emergency Paid Sick Leave Act (EPSLA)
  • The Three Step Process: Disaster Loans
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  • NEW TAX DEADLINE IN THE WORKS
  • SBA’s NEW YEAR RESOLUTION ENFORCEMENT!
  • New Law Helps People Save For Retirement; Other Retroactive Changes Impact Many Taxpayers
  • IRS Increases Visits To High-Income Taxpayers Who Haven’t Filed Tax Returns
  • Guidance and Enforcement Put Virtual Currencies Front and Center
  • Proposed regs. Issued on Meal and Entertainment Expense Deductions
  • IRS Issues 2020 Standard Mileage Rates
  • Form 1040-SR: Seniors Get a New Simplified Tax Form for 2019
  • Fundamentals of Government Cost Accounting
  • MillerMusmar’s 10th Consecutive Year as a Pinnacle Sponsor of the Taste of Reston.
  • 2018 YEAR-END TAX PLANNING FOR INDIVIDUALS
  • Foreign Financial Asset Reporting Guidance Matrix Form 8938 and/or FBAR for Filings

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Our regularly updated newsletter provides timely articles to help you achieve your financial goals.

SBA RULE MODIFCATIONS UPDATE GOVERNNING 8A FIRMS

There have been several updates to the rules governing the Small Business Administration’s (SBA) 8(a) Business Development Program. These changes are designed to provide more flexibility and support for small businesses participating in the program.

Below is a summary of some of the key changes:

  1. Increased eligibility for certain small businesses: The SBA has increased the maximum net worth and income thresholds for eligibility in the 8(a) Specifically, the net worth threshold has been increased from $750,000 to $1.5 million, and the income threshold has been increased from $350,000 to $400,000 in 2022.
  1. New rules for economic disadvantage: The SBA has updated its rules for determining economic disadvantage, which is a key eligibility requirement for the 8(a) program. The new rules allow for a more nuanced analysis of an applicant’s financial situation, including factors such as income, assets, and liabilities. This change is designed to ensure that more small businesses have access to the program.
  2. Increased mentor-protégé opportunities: The SBA has expanded its mentor-protégé program, which allows small businesses in the 8(a) program to partner with larger, more established companies. The new rules allow for more flexibility in the types of businesses that can participate in the program and also provide additional opportunities for joint venture agreements.
  3. Changes to joint venture requirements: The SBA has updated its rules governing joint venture agreements between 8(a) participants and other businesses. The new rules require that the 8(a) participants be the managing partner in the joint venture and also provide more guidance on how profits and losses should be distributed.
  4. New rules for program participation: The SBA has implemented new rules that require 8(a) participants to meet certain performance benchmarks in order to remain in the program. Specifically, participants must meet certain revenue and job creation targets in order to continue receiving benefits from the program. The Small Business Administration (SBA) has implemented new rules as of 2021 that require 8(a) program participants to meet certain performance benchmarks in order to continue receiving benefits from the program. These performance benchmarks are designed to ensure that small businesses in the program are making progress towards their long-term goals and are contributing to the overall success of the program.
  5. Under the new rules, 8(a) program participants must meet certain revenue and job creation targets in order to remain in the program. Specifically, the SBA requires participants to achieve at least $500,000 in annual revenue for their third year in the program and at least $750,000 in annual revenue for their fourth and fifth years in the program. Participants must also create and maintain at least one job for each $75,000 in 8(a) program funding that they receive.

In addition to these performance benchmarks, the SBA also requires 8(a) participants to submit annual business plans and financial statements. These reports are used to evaluate the progress of the participant and to ensure that they are on track to meet their long-term goals.

If a participant fails to meet the performance benchmarks or fails to submit the required reports, the SBA may terminate their participation in the program. This termination can have serious consequences for the participant, including the loss of access to 8(a) program benefits and the loss of valuable relationships with program mentors and partners.

These are just a few of the key changes to the SBA’s 8(a) program in 2021-2022. Small businesses interested in participating in the program should consult with the SBA or a qualified advisor to ensure that they understand the eligibility requirements and other program rules.

Please be advised that, based on current IRS rules and standards, the advice contained herein is not intended or written by the practitioner to be used and cannot be used by the taxpayer to avoid penalties.

MillerMusmar CPAs is an established accounting firm with offices in Reston, Virginia. We have a twenty-six-year history of providing top-quality auditing, tax, and accounting services to clients throughout the Washington Metropolitan area and internationally. By combining the expertise of a mid-sized firm with personal attention, we are both large and small enough to deliver responsive service to our clients. For more information, please visit our website at www.MillerMus

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