Big Changes Are Coming for SBA’s HUBZone Program

For the first time in 20 years, SBA is proposing an extensive overhaul of its regulations for the HUBZone program. SBA recognizes the difficulty firms face getting into and staying in the HUBZone program, so they are revising the HUBZone rules to provide greater certainty to HUBZone applicants and participants. The proposed rule would reduce the regulatory burdens imposed on HUBZone small business concerns and on government agencies by eliminating ambiguities in the regulations and making it easier for HUBZone . . . Read More

Effective October 1, 2018: SBA Issues Final Rule Regarding Ownership and Control Requirements for SDVOSBs

Recently, I wrote a blog detailing the Department of Veterans Affairs’ (VA) final rule on verification guidelines for veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs), which provides that the VA will use the U.S. Small Business Administration’s (SBA) regulations. Just three days before taking effect, SBA issued its final rule on Ownership and Control of SDVOSB Concerns, amending its regulations relating to ownership and control for VOSBs and SDVOSBs. For context and background, I also wrote about SBA’s proposed rule earlier . . . Read More

SBA Eliminates “Direct” Ownership Rules for HUBZone Program

On March 26, 2018, the U.S. Small Business Administration (SBA) issued a direct final rule that changed the wording of 13 C.F.R. § 126.200(b)(1) to allow indirect ownership by U.S. citizens of companies in the HUBZone program. The stated purpose of the rule change is to align more accurately the rule with the underlying statutory authority. Prior to this change the HUBZone rules required that a HUBZone company be “unconditionally and directly owned” by U.S. citizens. The rule took effect . . . Read More

Navigating SBA’s “Present Effect” on Your Corporate Strategies

Presented by Jon Williams and Kimi Murakami   Click here  to view the recorded session.   Session Description: When looking to make an investment in or purchase a small business contractor, it is critical to understand the potential impact of your corporate strategy under SBA’s small business rules. SBA has a unique rule called the “present effect rule” which can create adverse consequences for mergers and acquisitions, stock options, and convertible securities – even before the transaction is finalized or the option . . . Read More

SBA Amends Its Recertification Rules: Effectively Overturns Recent OHA Case

In a noteworthy decision earlier this year, the Small Business Administration’s (“SBA”) Office of Hearings and Appeals (“OHA”) confirmed the broad nature of SBA’s general rule that a contractor maintains its size and socio-economic status for the life of a contract. See In the Matter of Analytic Strategies, Inc., SBA No. VET-268 (Jan. 29, 2018) . This case required OHA to interpret the SBA regulation establishing the recertification rule in the context of Service-Disabled Veteran-Owned Small Business Concern (“SDVO SBC”) status. The regulation permits a concern that initially qualifies as an SDVO SBC . . . Read More

Big Changes Proposed to SBA’s Size Standards Methodology

Being and remaining a small business in the eyes of the government is one of the most important considerations for every federal contractor participating in small business set-aside programs. The rules of the contracting game change significantly if your company is small versus “other than small.” On April 27, 2018, SBA released a proposed rule that could impact your status as a small business, as SBA goes forward with its statutorily mandated revision of the size standards that dictate the . . . Read More