1. Growing Your NHO Enterprise
Karl Kaluhiokalani, Chairman
August 1, 2018

2. Strategies for Growth Two Primary Ways to Expand Ownership of
For-Profit Companies
New Organization Start-Up
Acquisitions

3. New Organization Start-Up
File Corporate Documents
Establish By-Laws
Obtain Tax ID’s
Obtain DUNS Number
Register in SAM & Obtain Cage Code
Develop Business & Marketing Plan
Prepare SBA 8(a) Application

4. New Organization Financial Requirements for SBA 8(a)
(h) An applicant concern owned by a NHO must possess reasonable prospects for success in competing in the private sector if admitted to the 8(a) BD program. An applicant concern owned by a NHO may establish potential for success by demonstrating that:
It has been in business for at least two years, as evidenced by income tax returns (individual or consolidated) for each of the two previous tax years showing operating revenues in the primary industry in which the applicant is seeking 8(a) BD certification; or
(2) The individual(s) who will manage and control the daily business operations of the firm have substantial technical and management experience, the applicant has a record of successful performance on contracts from governmental or nongovernmental sources in its primary industry category, and the applicant has adequate capital to sustain its operations and carry out its business plan as a Participant; or
(3) The NHO has made a firm written commitment to support the operations of the applicant concern and it has the financial ability to do so.

5. Identify Target for Acquisition
Making an Acquisition
Identify Target for Acquisition
Determine Interest for Sale
Conduct Due Diligence
Negotiate Agreements
Prepare SBA Documentation

6. Acquisition Financial Requirements for SBA 8(a)
Purchase Agreement
Valuation Basis for Purchase Price
Three Years of Tax Returns
P&L and Balance Sheets for Most Recent Quarter
Front & Back Copies of Stock Certificates and Ledgers (Corp)
Transfer Documents for Other Than Stock Corporations
Follow Potential for Success Guidance 13 CFR (h)

7. IRS Regulations Prohibit Stock Ownership in “S” Corporations
Limitations On Stock Ownership By Non-Profit
IRS Regulations Prohibit Stock Ownership in “S” Corporations
Exception for 501(c)(3) Approved Organizations

8. Good Luck! Review Procedures on Certify.SBA.Gov
File SBA 8(a) Application
Review Procedures on Certify.SBA.Gov
Download Entity Work Around
Follow Work Around Instructions
Provide as Much Detail as Possible
Good Luck!

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THANK YOU