BREAKING: SBA to Suspend Bona Fide Place of Business Requirements for 8(a) Construction Contracts, Effective Immediately

Bibi Hidalgo, the Associate Administrator for SBA’s Office of Government Contracting and Business Development, just announced during her keynote address at the National 8(a) Association Alaska Regional Conference that SBA will be suspending the bona fide place of business requirement for 8(a) construction contracts, effective immediately. Ms. Hidalgo stated that SBA has been looking for ways to empower small businesses and lessen their burden. She accounted, “I am excited to announce today, for the first time, a new SBA policy, . . . Read More

SBA Issues New HUBZone Guidance and Map Updates

The Small Business Administration (SBA) has once again updated its HUBZone FAQs—this time with welcome changes for HUBZone firms with principal offices located in Redesignated Areas and / or Qualified Disaster Areas (QDA). The latest FAQs state that they were effective June 24, 2021, but we saw them for the first time on SBA’s website earlier this month. Below are our top five takeaways from the latest FAQs. While SBA’s FAQs continue to state that a firm located in a . . . Read More

New CIO-SP4 Modification – An Undue Restriction on Competition and a Violation of SBA Regulations?

On June 22, 2021, the National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC) issued its third modification to the Chief Information Officer-Solutions and Partners 4 (CIO-SP4) Request for Proposals (RFP). Among other things, NITAAC made significant changes to how subcontractors and mentors in Small Business Administration (SBA) approved mentor-protégé programs are treated for purposes of the evaluation. The RFP appears to disallow the use of any subcontractor experience, past performance, or other qualifications, including from small businesses, . . . Read More

SBA Proposes to Increase Small Business Eligibility for Loan Programs Through Size Standard Revisions

On May 25, 2021, the Small Business Administration (SBA) issued a proposed rule that would increase size standards for 49 industries in the Wholesale Trade (Sector 42) and Retail Trade (Sectors 44-45) sectors. The North American Industry Classification System (NAICS) codes under these sectors are not used to classify government acquisitions for supplies. Instead, procurements for supplies are classified under a manufacturing or supply NAICS code. Therefore, SBA estimates that this rule would not have any impact on federal contract dollars awarded . . . Read More

SBA Extends the HUBZone Map Freeze to June 30, 2023

Today, the Small Business Administration (SBA) issued a direct final rule extending the HUBZone map freeze from December 31, 2021, to June 30, 2023.  The direct final rule (available here ) takes effect on June 21, 2021.  This is the latest in a series of developments for the HUBZone Program in 2021; read PilieroMazza’s previous coverage on the developments impacting the HUBZone Program here and here .  Several years ago, SBA froze the HUBZone maps until December 31, 2021, to ensure that firms . . . Read More

GAO Holds Solicitation Requirement Violates SBA’s Regulations Regarding Small Business Mentor-Protégé Joint Ventures

In a recent decision , the Government Accountability Office (GAO) sustained a protest challenging the terms of a solicitation, as the solicitation impermissibly required that a protégé and mentor in a joint venture have the same level of experience as other offerors. This is an important decision for companies that are parties to a joint venture, and a reminder to carefully review a solicitation’s requirements before submitting a proposal. As relevant background, the Small Business Administration (SBA) revised its regulations in November . . . Read More

OHA Upholds SBA Denial of Admission to 8(a) Program for Failure to Demonstrate Status as Recognized Indian Tribe

In a noteworthy decision this February, the Small Business Administration’s (SBA) Office of Hearings and Appeals (OHA) upheld SBA’s determination denying GTEC Industries, Inc. (GTECI) entry into the 8(a) Business Development Program as a tribally owned entity. [1] For businesses seeking 8(a) program certification, this decision highlights the importance of demonstrating eligibility by a preponderance of the evidence. GTECI’s 8(a) application has a lengthy history. GTECI first applied to the 8(a) program in May 2017 and was denied in May 2018 . . . Read More

SBA Pivots to Say HUBZone Firms in Redesignated QDA Cannot Maintain 10-Year Principal Office Eligibility Through Long-Term Investment

In January, we issued a client alert discussing how HUBZone firms in redesignated areas could plan to maintain their HUBZone status after the end of 2021. One of the primary strategies we discussed in the client alert was based on Small Business Administration (SBA) guidance about long-term investments in qualified disaster areas (QDAs). At the time, based on SBA guidance, we understood that HUBZone firms located in redesignated areas could qualify their current HUBZone principal office location as HUBZone eligible for at . . . Read More

SBA Takes Steps to Address PPP Validation Error Problems

On February 10, 2021, the Small Business Administration (SBA) announced new policy changes to the Paycheck Protection Program (PPP) meant to address an ongoing issue loan applicants face regarding validation error codes. These error codes serve as validation checks to combat fraud and prevent improper loans from being issued to ineligible businesses. However, many eligible businesses have received such error codes during the application and forgiveness process, delaying necessary economic relief. SBA’s new changes grant additional authorities to lenders for borrowers . . . Read More