What is the Surplus Property Program

Did you know that SBA has a Government Surplus Property Program?  It is one of the lesser known benefits of being an 8(a) participant.  The Surplus Property Program allows 8(a) businesses to obtain excess equipment from the government.  As long as the 8(a) business is eligible and in good standing with SBA they are eligible to receive the Federal Government Property from State Agencies for Surplus Property (SASPs).  Every state has its own State Surplus Property Agency.  The property that you can receive has been donated by Federal agencies that no longer need the item.

Did you know that SBA has a Government Surplus Property Program?  It is one of the lesser known benefits of being an 8(a) participant.  The Surplus Property Program allows 8(a) businesses to obtain excess equipment from the government.  As long as the 8(a) business is eligible and in good standing with SBA they are eligible to receive the Federal Government Property from State Agencies for Surplus Property (SASPs).  Every state has its own State Surplus Property Agency.  The property that you can receive has been donated by Federal agencies that no longer need the item.

Eligibility

In order to receive the donated equipment an 8(a) business must meet the following conditions:

If you meet the above eligibility criteria then you can take advantage of this program.  Furthermore, you can benefit by putting this equipment into use and enhance your capabilities of your business

How Can I use the acquired surplus property?

As a 8(a) Participant you may acquire surplus Federal property from any SASP located in any state, provided the concern represents and agrees in writing:

Failure to Comply

In summary, you are basically renting the equipment for your program term plus one year.  As long as you meet the eligibility requirements of the program you are free to visit your State Surplus Property Agency and obtain the equipment.

How to acquire federal surplus property?

The following are the steps need to be able to acquire government surplus property.

SASP Will:

In Summary, you will not receive the equipment for free.  The SASP will charge a reasonable fee to cover the states cost of locating, inspecting and transporting the surplus property.  You must also agree not to sell the property and return the property to the state agency, or another 8(a) business.

Title

The title will transfer after all the paperwork has been completed by the State agency and a copy has been sent to SBA.  You will also receive a copy of the paperwork.  Your title will transfer after you receive the property.

Compliance

SBA will periodically review whether you are property using and maintaining the surplus property as agreed. This review may include site visits to visually inspect the property.  Remember as part of your contract you agreed to provide SBA with access to all relevant records and visitation rights to the equipment.  If SBA receives information that you may have sold or otherwise disposed of the surplus property then they will have to investigate the matter.  Also, you agreed to use the equipment as intended.

Furthermore, if you fail to property maintain the equipment SBA can direct you to transfer the equipment back to the state agency or to another 8(a) business.  Also if you dispose of the equipment without SBA’s consent then you could face a termination action.

Conclusion

In Summary, this program allows an 8(a) business to obtain equipment that it may not be able to afford presently.  This equipment can increase production or enhance your business in some manner.   Check out your local State Agency and have a discussion today about the government surplus property program.

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