SBA Considers Public Comments on Proposed Size Standard Increases to NAICS Codes 562910 and 541519

As we previously reported, on September 10, 2014, the SBA released proposed increases to the small business standards for many industries that use employee-based size standards. The final rule is scheduled to be published on January 26, 2016; however, a pre-publication of the final rule is available now at www.federalregister.gov .   According to the pre-publication, the SBA will adopt most of the proposed changes with two key exceptions. The SBA is not increasing the Environmental Remediation Services (“ERS”) exception under . . . Read More

SBA Seeks Comment on WOSB Certification Process

By Katie Flood and Megan Connor Today, SBA released an advance notice of proposed rulemaking, which will amend the WOSB Program certification process.  In the 2015 NDAA, Congress directed SBA to end self-certification for WOSBs and EDWOSBs and implement a certification process. SBA is now soliciting feedback on how to best implement Congress’ directive. Through the advance notice, SBA is providing commenters the ability to suggest what they believe is the most appropriate way to structure the WOSB/EDWOSB certification process . . . Read More

SBA Gradually Approves of Hiring Key Personnel from an Alleged Ostensible Subcontractor

By Julia Di Vito The Small Business Administration (“SBA”) is undergoing a gradual shift in its views on small business prime contractors proposing to hire “key personnel” from their subcontractors in the context of the ostensible subcontractor rule. As most small business subcontractors who have been involved in a size protest know, the ostensible subcontractor rule provides that when a prime contractor is unusually reliant on the subcontractor, SBA will deem the prime contractor affiliated with its subcontractor in performing . . . Read More

SBA Approval of 8(a) Joint Ventures – What Is Required Beyond the Regulations?

By Kimi Murakami Over the past several months, our firm has been approached by Section 8(a) companies throughout the country who have been advised by their SBA district offices that their 8(a) joint ventures would not be approved by the SBA. This disappointing news came in spite of the fact that the 8(a) company felt it had met the requirements for 8(a) joint ventures in the SBA rules (see 13 C.F.R. § 124.513). Based on the varied reasons for these . . . Read More

SBA Proposes Simplified Affiliation Tests for Business Loan Programs

Keep it simple, says SBA, in a recent proposed rule that would redefine the rules of affiliation for firms applying to SBA’s business loan programs, including the 7(a) Loan Program and 504 Loan Program (collectively, the “Business Loan Programs”). Per the proposed rule, changing conditions in the economy and a constantly-evolving small business community have spurred SBA to seek ways to improve the efficiency of its Business Loan Programs. To that end, SBA is proposing to simplify guidelines for determining . . . Read More

SBA Issues Final Rule on WOSB/EDWOSB Sole Source Authority

The SBA published the final rule to establish the procedures whereby Federal agencies may award sole source contracts to WOSBs and EDWOSBs. Under the rule, a contracting officer may award a sole source contract to a WOSB or EDWOSB where (1) the firm is a responsible contractor and the contracting officer does not have a reasonable expectation that 2 or more EDWOSBs or WOSBs (as the case may be) will submit offers; (2) the anticipated award price of the contract . . . Read More

No Longer on Hold: SBA Resumes 7(a) Lending to Small Businesses

The 7(a) lending program is back on track. Last month, President Obama signed into law a bill that would raise the SBA’s lending authorization ceiling to $23.5 billion for its flagship lending program. With the bill’s signing, the SBA resumed loan approvals and small businesses are again able to get loans backed by the federal government. On July 23, 2015—just a few days before the president put pen to paper—the SBA maxed out its $18.75 billion lending limit for small . . . Read More

SBA’s Proposed Rule Provides Guidelines on the Common Administrative Services Exception to Affiliation for All Tribal Entities

By Megan Connor The SBA’s February 2015 proposed rule concerning the expanded mentor-protégé program received much attention and analysis, much (deservedly) focused on the new program. However, one aspect of the proposed rule could, if made final, provide important guidelines for business concerns owned and controlled by Indian Tribes, Alaska Native Corporations (“ANCs”), Native Hawaiian Organizations (“NHOs”), and Community Development Corporations (“CDCs”). Under the current SBA regulations, business concerns owned and controlled by Indian Tribes, ANCs, NHOs, CDCs, or wholly-owned . . . Read More