FedScoop Interviews PilieroMazza’s Tony Franco on Judge Prohibiting Use of Presumed Racial Disadvantage in SBA 8(a) Program

A federal judge in Tennessee struck down the Small Business Administration’s use of presumed racial and ethnic disadvantage as a qualification for SBA’s 8(a) Program—a keystone program intended to broaden the government contracting landscape for small business government contractors—throwing it into uncertainty. In an interview with FedScoop, PilieroMazza ’s managing partner, Tony Franco , said he doesn’t believe the ruling would apply to people currently in the program, but that it could have a chilling effect on working with businesses in the program. . . . Read More

Federal Court Prohibits SBA’s Use of Rebuttable Presumption for 8(a) Program

On July 19, 2023, the U.S. District Court for the Eastern District of Tennessee issued an important decision where it declared that the Small Business Administration’s (SBA) rebuttable presumption of social disadvantage, which is used in admitting many small-disadvantaged businesses to the SBA’s 8(a) program, violated the equal protection rights of a government contractor and enjoined the use of the rebuttable presumption in administering the 8(a) program. Ultima Servs. Corp. v. U.S. Dep’t of Agric., No. 2:20-CV-0041-DCLC-CRW (E.D. Tenn. July . . . Read More

SBA’s New Lending Rules Improve Small Business Growth Opportunities

On April 12, 2023, the U.S. Small Business Administration (SBA) published two new rules: (1)  Small Business Lending Company (SBLC) Moratorium Rescission and Removal of the Requirement for a Loan Authorization  (Moratorium Rule) and (2)  Affiliation and Lending Criteria for the SBA Business Loan Programs   (Affiliation Rule), collectively, the Rules. The Rules focus on combating persistent gaps in access to capital affecting small business owners in underserved communities. Starting May 11, 2023, small businesses and entrepreneurs will have more opportunities to obtain capital for growth and development. The Moratorium Rule Small businesses and entrepreneurs face major issues related to limited access to capital and restrictions imposed . . . Read More

Forming a Joint Venture? SBA Stresses Importance of Complying with State Law

As PilieroMazza previously highlighted , contractors wishing to pursue set-aside work through small business joint ventures (JVs) must comply with the Small Business Administration’s (SBA) JV regulations, which require certain JVs to have detailed and specific JV agreements (JVAs). A recent case from SBA’s Office of Hearing and Appeals (OHA) highlights just how important it is that small business JVs also comply with applicable state laws. Contractors should be aware that failing to comply with state laws can cause a small . . . Read More

SBA Releases Preview of New HUBZone Maps Effective July 1, 2023

HUBZone contractors have been anxiously awaiting updates to the HUBZone maps. In 2021, SBA extended the “freeze” on the HUBZone maps until June 30, 2023, to provide enough time to update the maps based on the 2020 Census results. SBA targeted the release of a beta version of the new HUBZone maps in January 2023, and SBA recently hit that mark. A preview of the new HUBZone maps that will take effect on July 1, 2023, is now up on . . . Read More

Final Rule Establishes Requirements for New SBA Veteran Small Business Certification Program

The Small Business Administration (SBA) issued a final rule last week, officially transferring the responsibility for certification of veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSB) to SBA, effective January 1, 2023. We previously blogged about this change here , indicating that Section 862 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 provided for the elimination of the Department of Veterans Affairs’ (VA) certification program altogether and implementation of a certification requirement for all VOSB / SDVOSB . . . Read More

SBA Adjusts Economic Disadvantage Thresholds for 8(a) and EDWOSB Programs and Monetary-Based Size Standards

Per an interim final rule published on November 17, 2022, the Small Business Administration (SBA) is adjusting the three economic disadvantage thresholds applicable to the 8(a) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) programs for inflation. SBA’s interim final rule will also increase its receipts-based small business size standards. These changes will be effective on December 19, 2022. SBA’s changes should be welcomed by small businesses and participants in the 8(a) and EDWOSB programs and those looking to apply. Economic Disadvantage Thresholds for . . . Read More

PilieroMazza’s Matt Feinberg Comments on Shuttered Venue Operators Grant Application Lawsuit Against the SBA

A nearly 100-year old family-run animal attraction in South Florida, Monkey Jungle, recently filed for federal aid due to issues related to COVID. Since primates in the attraction can contract the highly contagious virus from humans, the company had to close its doors. With no revenue, and still maintaining a staff to care for hundreds of animals, Monkey Jungle is struggling to stay in business. So the company filed for a federal COVID relief grant designed to keep entertainment venues . . . Read More

SBA Proposes Revisions to Ownership and Control Requirements for the 8(a) Business Development Program

As PilieroMazza noted recently here , the Small Business Administration (SBA) released a major proposed rulemaking that will impact government contractors, primarily those that are participants in the 8(a) Business Development Program. PilieroMazza has posted a series of blogs regarding SBA’s proposed rulemaking, and this client alert highlights some of the proposed changes that pertain specifically to the 8(a) Program. Ownership and Control As you may be aware, there are certain ownership restrictions on an 8(a) firm. One of the restrictions . . . Read More