Verification Assistance Program Part 2 Specific Documents to Submit, Avoiding Pitfalls

1. Verification Assistance ProgramPart 2Specific Documents to Submit, Avoiding Pitfalls

2. Agenda Topics • Welcome, Introductions • Training Objectives • Verification– Initiation Process • Preparing for Verification • Getting Started Activities • Types of Documents Needed • Submitting Your Application • Pitfalls to Avoid • Common Reasons for Denial • Common Reasons for Delays • Next Training

3. Part Two – Training Objectives Understand Verification Initiation Process Review key ‘Getting Started’ activities Understand documents are required and rationale New Verification Counselor – Registration Site http://www.va.gov/osdbu/veteran/vapTraining.asp

4. Initiation – Before You Start • Prerequisites: • Read the “Guide for Applicants” on VetBiz.gov • Review 38 CFR Part 74 for ownership and control criteria • Review the Verification Assistance Briefs on VetBiz.gov for more clarity on issues • Register with Dun & Bradstreet and in the System for Award Management (sam.gov) • Gather all the documentations for your business type • Compare the business documents to the criteria in 38 CFR Part 74, and ensure that there are no clerical errors on the documentation

5. What Documents are Needed for Verification?

6. What Documents are Needed for Verification? (continued)

7. What Documents are Needed for Verification? (continued)

8. What Documents are Needed for Verification? (continued)

9. What Documents are Needed for Verification? (continued)

10. What Documents are Needed for Verification? (continued)

11. How Does a Company Become Verified? Screen shots outlining the Verification process from beginning to end

12. Initiation – Getting Started Go to http://www.va.gov/osdbu/ and click the “Register-VIP” icon

13. Initiation – Create a User Account Scroll to the bottom of the page and click “Create User”

14. Initiation – Register your Business“If you’re a new business to VetBiz”

15. Initiation – Check Qualifications Check all boxes that apply to your business Click “Create User”

16. Initiation – Check Qualifications (Continued)

17. Filing Out the VA Form 0877 Read the VAF 0877 e-signature instructions, click “next” Fill out the form If multiple owners, click “Add Another Owner” When all owners are added, click “next”

18. Querying Information From SAM Make sure that you update your business information in SAM BEFORE YOU BEGIN THIS PROCESS!

19. Initiation – Agreement to the Terms Carefully read the text on the next screen Check the box to signify that you have read and agree to the terms outlined above Click “next”

20. Initiation – Personal Information Enter your personal information This is used to check Veteran and service-connected disability status in the Beneficiary Identification Records Locator Subsystem (BIRLS) database

21. Initiation – Signing and Submitting Click where indicated to sign On the next screen click “next” if you have viewed your completed VAF 0877

22. Initiation – Your profile Click on your business name (red arrow) to fill in business information Much of this information is pulled from your SAM profile Click on the ‘Profile’ tab (yellow arrow) Set up your email notifications NOTE: All correspondence relating to your company will go to the email address used to register your company. Please ensure that it is correct.

23. Business Process Overview

24. Initiation – Upload Documents Based on the business structure selected earlier, the list of required documents appears here Upload scanned documents for each required document category If no document exists for that type (i.e. taxes for a new business), a letter of explanation is required Once all documents have been uploaded, click “submit”

25. Initiation - Submission Veteran status and service-connected disability are checked during the Initiation stage. The Veteran is alerted within 48 hours if there is an issue. You will then see a screen that confirms that you submitted the application This notice does not mean that the application is complete. All documents will be reviewed to see if they are sufficient for examination Once reviewed and determined sufficient, an email will be sent noting that the application is complete The 90-day processing time begins when the application is determined to be complete

26. Common Reasons for Denial Determining Veteran Ownership and Control • Ownership • Applicant must be at least 51% unconditionally and directly owned by one or more Service-Disabled Veterans (SDV) or Veterans • Control • One or more Veteran(s)/SDV(s) must conduct both the day-to-day management and long-term decision-making for the Veteran/SDV-Owned Small Business

27. What are Some Pitfalls to Verification Pertaining to Ownership? Ownership must be unconditional. The Veteran owner must be able to transfer any or all of his ownership interest, to anyone, at any time, he/she pleases Ownership must not be subject to conditions that restrict transfer of the Veteran’s ownership interests to another

28. What are Some Pitfalls to Verification Pertaining to Ownership? (Continued) Veteran owners must always have the majority vote, either by representation on the board of directors or by weighted voting  A corporation with two directors (one a non-Veteran) may use weighted voting to show that the Veteran has the majority vote

29. What are Some Pitfalls to Verification Pertaining to Ownership? (Continued) Weighted voting is defined as a system in which the participants have varying numbers of votes, typically by the number of shares of stock held If a transfer in ownership amongst immediate family members from a non-Veteran to a Veteran has occurred within the past two years, and the non-Veteran remains a stockholder, officer, director, or key employee, the non-Veteran will be presumed to remain in control of the concern

30. What are Some Pitfalls to Verification Pertaining to Ownership? (Continued) If a transfer in ownership amongst immediate family members from a non-Veteran to a Veteran has occurred within the past two years, and the non-Veteran remains a stockholder, officer, director, or key employee, the non-Veteran will be presumed to remain in control of the concern Supporting documentation reflecting management experience of the Veteran and evidence of the Veteran’s current participation in the management of the applicant must be provided to refute this presumption

31. What are Some Pitfalls to Verification Pertaining to Ownership? (Continued) Community property states create an issue for married Veterans In a community property jurisdiction, most property acquired during the marriage is owned jointly by both spouses and is divided upon divorce, annulment or death Joint ownership is automatically presumed by law in the absence of specific evidence that would point to a contrary conclusion for a particular piece of property

32. Community Property States Arizona California Idaho Louisiana Nevada New Mexico Texas Washington Wisconsin

33. What are Some Pitfalls to Verification Pertaining to Control? Non-Veteran owner(s), manager(s) or board member(s) must not have the ability to overrule decisions made by the Veteran owner(s) The ability to remove board members at a shareholder meeting is generally not sufficient if the bylaws give the board the ability to make legally binding decisions without the approval of the Veteran owner(s)

34. What are Some Pitfalls to Verification Pertaining to Control? (Continued) A firm is not verifiable if non-Veterans have the possibility to: • Out vote Veteran(s) • Establish a quorum without the presence of the Veteran(s) • Prevent the establishing of a quorum by their absence • Preclude the Veteran owner(s) from making any and all decisions on the firm

35. Common Delays in the Process Owner contact email/phone are not current Documents were not submitted through the VIP electronic process Incomplete/incorrect documentation Not checking the appropriate box for “status” on VAF 0877 Missing/inaccurate percentages of ownership on VAF 0877

36. Common Delays in the Process (Continued) Total percentage of ownership on VA 0877 not equaling 100% Not listing all owners on VAF 0877 Business name on VAF 0877 and VIP profile mismatched Veteran’s name on VAF 0877 doesn’t match Veterans Benefit Administration (VBA) record

37. Revitalized OSDBU Web Site

38. Summary Verification Process – Initiation Stage Key ‘Getting Started’ Activities Required Documentation Screen Shots of Application Steps Pitfalls to Avoid

39. Next: Part Three – 38 CFR § 74.4 Review Understand Verification Initiation Process Review key ‘Getting Started’ activities Understand documents required and rationale Understand resources available to Verification Counselors – http://www.va.gov/osdbu/

40. Thank You! http://www.va.gov/osdbu/veteran/vapTraining.asp