Quit Claim Deed

Quit Claim Deed
One of my clients recently contacted me about obtaining a GSA contract schedule for his business.  We talked about how his business is set up and I found out he wants to tranfer ownership of his business to his daughter and then retire.  He said his daughter is already handling the daily operation of the business.  I told him that if he did transfer the business to his daughter the business might be eligible for 8a certification.

The discussion turned to the real estate he owns personally and the best way to transfer the real estate to his daughter.  We discussed the merits of using a Quit Claim Deed versus a General Warranty Deed.  A Quitclaim Deed would simply deed the property to his daughter without a warranty.  This type of deed is often used when transferring property between family members.  A General Warranty Deed would be more applicable if his daughter were purchasing the property at fair market value and wanted to make sure title to the property was clear.

SBA Form 1010 and Form 1010B

SBA Form 1010 is the form used to apply for the SBA 8(a) Business Development Program.  In addition to Form 1010, each person owning 10% or more of the business and each director, management member, partner, and officer needs to complete Form 1010B.  These forms provide basic information to the SBA about the business and its owners which the SBA will use to make a preliminary determination of whether the business is eligible for 8a certification.  Prior to filling out Form 1010, the applicant company needs to register with Central Contractor Registration, the Dynamic Small Business Search, and a DUNS Number.

Form 1010
Form 1010 requires information about the potential 8a company including the type of business conducted, the date the company was established, the number of company employees, the NAICS code that applies to the company's business, the percentage of revenue the company receives under the NAICS code and information about the company's ownership and management.

Form 1010 also seeks sensitive information about the company like whether the company has ever filed delinquent returns, is past due on its taxes, pending lawsuits, etc.

Form 1010B

Form 1010B is specific to the owners, operators and management of the applying 8a company.  Form 1010B requires such individuals to state whether they have declared bankruptcy, sought prior SBA loans, are parties to ongoing lawsuits, tax delinquencies, etc.