Author Archives: SmallGovConContributor

Regulatory Update: SBA Moves to Clean Up Small Disadvantaged Business Rules

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Last month, the SBA moved to edit its regulations, taking a red pen to its current rules governing Small Disadvantaged Businesses (or SDBs), as described in the Federal Register.

This post will highlight what the new rule will mean for current SDBs—and how businesses can become eligible for SDB subcontractor status under the new rule. While the SDB program is still alive and kicking, the rules will be simplified to eliminate a lot of language that is simply no longer applicable.

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Despite Your Interest in a Protest, GAO Might Not Think You’re an “Interested Party”

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Let’s suppose that you just received a new solicitation hot off the press. As you peruse it, you find a requirement that you believe is too onerous or unnecessary. So you contemplate filing a GAO protest to challenge that term.

Before doing so, be sure that you’re an “interested party” under GAO’s regulations. Well, I filed a protest, you say, doesn’t that make me an interested party? Short answer: no.

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GAO Bid Protests: A Wrinkle In Time(liness)

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As our regular readers know, a GAO protest challenging an agency’s evaluation decision must be filed within 10 days from the date the protester knew (or should have known) of the protest grounds, or within 10 days from the date the protester receives its debriefing (but only if the debriefing was required and timely requested). 4 C.F.R. § 21.2(a)(2).

But sometimes, an agency might give an offeror a reason to protest before it makes its official award determination. In that case, should the offeror wait to file its protest until the agency completes its evaluation?

In some cases, no—the protest should be filed within 10 days from the date the agency makes its determination known.

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SBA: It’s (Maybe) Fine if You Didn’t Count the Employees of Your Foreign Affiliates for PPP Purposes

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In what might be a classic “now you tell me” scenario, the SBA issued a new rule May 21 saying that if an applicant failed to count the employees of its foreign affiliates when it was determining its eligibility, the SBA will not hold that against the applicant so long as the application was submitted before the SBA clarified that requirement.

The problem with that, however, is that because the safe harbor ended May 18, it’s highly likely that a lot of those businesses already gave their PPP loan back. They’d be forgiven for thinking they had to, as earlier this month Sen. Marco Rubio was indicating that Congress would investigate companies who took PPP funds for which they weren’t eligible.

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UPDATE: SBA Extends PPP Loan Payback Safe Harbor Provision Deadline (Again!) to May 18

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Since our post yesterday, the SBA has once again updated the safe harbor deadline for paying back Paycheck Protection Program loans to Monday, May 18.

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SBA OHA confirms 3-year look-back period for economic dependence affiliation

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Under the SBA’s regulations, affiliation between two companies might exist where one company derives 70% or more of its receipts from the other over the preceding three fiscal years. See 13 C.F.R. § 121.103(f)(2).

This economic dependence affiliation, as it is called, can be tricky to identify in practice—it is, after all, a rebuttable presumption of affiliation. That is, a company might be able to demonstrate that economic dependence doesn’t exist if, for example, it has only been in business for a limited amount of time and has only been awarded a limited number of contracts.

Recently, the SBA’s Office of Hearings and Appeals considered the bounds of the economic dependence affiliation rule and interpreted the three-year look-back period.

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Newsflash: The Final Rule Implementing SBA Certification for WOSBs Is Here!

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Update 5/14/2020: Since this post was originally published, SBA’s website has clarified when SBA Certification will be available and when Self-Certification will end. The post has been updated to reflect this information.

On Monday, the Small Business Administration will publish a Final Rule updating the certification methods for businesses applying for and participating in the Women-Owned Small Business program. The new Rule will also impose new thresholds for demonstrating economic disadvantage, impacting applicants not only for the WOSB program, but also the 8(a) Business Development program.

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