In a recent decision, SBA’s Office of Hearings and Appeals (OHA) emphasized the importance of a careful reading and complete understanding of the control and ownership requirements for Service-Disabled Veteran Owned Small Businesses (SDVOSBs). This decision provides contractors with an excellent opportunity to brush up on SBA’s control rules regarding qualifying and non-qualifying owners. As the appellant found out in this case, while it may seem to some at first glance that simple majority ownership by the service-disabled veteran is enough to meet SDVOSB requirements, voting provisions matter as well. Failure to keep in mind all aspects of SDVOSB requirements could lead to a denial of SDVOSB status. Let’s take a look at the language of the regulation in question, and how this case illustrates the potential consequences of overlooking a critical item in an otherwise-compliant application for SDVOSB certification.
Continue readingAuthor Archives: Gregory Weber
BREAKING: SBA Launches an End of Year 8(a) Program Audit
8(a) Program participants received an early holiday surprise from the SBA’s 8(a) Program this past week. A mass request was sent out to 8(a) Program participants and some graduates requesting extensive (mostly financial) internal documentation so that the SBA could audit the program for any potential fraud, waste, or abuse. While the need to protect taxpayer funds and the 8(a) Program are fundamentally important, such a sudden wide ranging document request came as a surprise to many across federal contracting. The SBA’s explanation provided some insight for this broad request.
Continue reading2026 NDAA: DoD CPARS Changes Coming
Both the Senate and House, as part of the draft 2026 National Defense Authorization Acts (NDAA), have proposed nearly identical ideas on overhauling the Department of Defense’s Contractor Performance Assessment Report System (CPARS) processes. While both NDAAs have passed, and therefore require reconciliation in a committee, their ideas are extremely similar and signal a coming change in CPARS processes for defense contractors. One big change is to focus on specific negative performance events using “a standardized scoring mechanism” and to remove reporting on “positive or neutral performance assessments.”
Continue readingDOT Issues Guidance on Impact of Removal of Presumed Disadvantage
As discussed in a previous post on SmallGovCon, the Department of Transportation (DOT) recently issued a interim final rule removing certain presumptions of disadvantage from its eligibility requirements for the Disadvantaged Business Enterprise (DBE) Program. As part of that change, DBE Program participants and applicants will have to submit new narratives discussing their social disadvantage. The DOT has released further guidance on the changes felt by the interim final rule, including impacts on the disadvantage narrative and current contracts.
Continue readingDOT Ditching DBE Program’s Presumed Social Disadvantage
The Department of Transportation (“DOT”) has administered aspects of the Disadvantaged Business Enterprise (“DBE”) program for decades for work to be performed for state and local transportation agencies. The DBE program’s eligibility requirements are quite similar to those under the Small Business Administration’s (“SBA”) 8(a) Program. As is well known, over the past few years the 8(a) Program has undergone many changes and legal challenges, altering its application and eligibility processes, especially with respect to presumed social disadvantage. Now the DOT DBE program seems to be undergoing very similar changes regarding disadvantage requirements.
Continue readingSBA’s SDVOSB Warning: Spell Out Veteran Control in Business Documents and Minutes
It is quite common for businesses in the private sector to share control and duties among many executives or individuals. However, as many who have looked into SBA socioeconomic certifications have found out, to gain certification in a set-aside program, basically all control needs to reside with one individual. Recently, the SBA’s Office of Hearings and Appeals (OHA) reviewed a SDVOSB recertification denial, and provided a reminder to contractors interested in the SDVOSB and VOSB program that the veteran must be the sole individual in control.
Continue readingSBA Proposes Increases to Receipts-Based Size Standards
Every five years the SBA is supposed to review some of its size standards. In August 2025, the SBA issued a proposed rule which would increase the size standard for over two hundred and sixty industries. As the proposed rule explains in great detail, SBA increased size standards for some NAICS codes and retained others. Let’s take a closer look.
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