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

SBA to Publish Interim Final Rule on Extension of 8(a) Participation

Both the Appropriations Act and the 2021 National Defense Authorization Act permit businesses who were participants in the 8(a) Business Development program on or before September 9, 2020, to extend their participation in the program for a period of one year. Accordingly, the U.S. Small Business Administration (SBA) is expected to publish a final rule incorporating this mandate tomorrow, January 13, 2021. Below are key takeaways for government contractors seeking to extend participation in the 8(a) program. Eligibility Requirements Through . . . Read More

SBA Provides Direction for PPP Round Deux Loans and Second Draw Loans

On January 6, 2021, the Small Business Administration (SBA) issued its first round of formal guidance for the new Paycheck Protection Program (PPP) and the second-draw PPP loans, which we first discussed here . SBA also gave some indication of plans for the second round of the PPP. SBA’s guidance can be found here for the next phase of PPP and here for the second-draw program. Below are key updates for businesses that need access to this important source of relief funding. As . . . Read More