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

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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Reminder: Joint Venture Agreements Must Include Required Provisions

It’s no secret that federal contract opportunities are becoming more and more competitive. But as we’ve previously gushed, small businesses enjoy a tremendous tool for enhancing their competitiveness: participating in a joint venture with another company.

Properly formed, a joint venture allows its participants to augment their capabilities and experiences in the quest to win (and successfully perform) a particular opportunity. But there’s the trick—to enjoy the benefits of a joint venture, that joint venture must meet various regulatory requirements. One misstep and the joint venture might not be eligible for the award.

A recent SBA Office of Hearings and Appeals decision shows the importance of making sure these regulatory requirements are met.

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New GovCon Handbook Coming Soon! Procedures and Pitfalls of Size Protests and Appeals

I’m pleased to announce that volume 5 of the “Koprince Law LLC GovCon Handbooks” series will be published soon! This GovCon Handbook, entitled Procedures and Pitfalls of Size Protests and Appeals, will be published through Amazon. Check the video below and the rest of this post for additional details.

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OHA Remands Area Office’s Conflicting Decision in Concurrent Size and Status Protests

What happens when an SBA area office finds a joint venture compliant with SBA rules in a size protest, but SBA’s Office of Hearings and Appeals says the same agreement fails to meet requirements in a status protest? Let’s find out.

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SBA, Can a Foreign-Owned Entity Receive a PPP Loan or What?

Well, we thought we had this figured out. Yet here we are a week later and we keep hearing conflicting reports.

The question remains, can a foreign-owned company receive a Paycheck Protection Program loan or not? Let’s try to figure it out.

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8(a) Social Disadvantage Narratives: What SBA is Looking For

Writing a social disadvantage narrative for application to SBA’s 8(a) Business Development Program can be tricky. While SBA’s regulations can guide your pen, they are not the only source of helpful information out there. Let’s take a look at some SBA guidance and recommendations based on SBA’s actual decisions that may increase your chances for success.

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Too Late for Take-Backs: Ostensible Subcontractor Analysis Won’t Consider Post-Proposal Changes

In Warrior Service Company, LLC, SBA No. SIZ-6046 (Jan. 24, 2020), the SBA reminded small business contractors that it determines whether a contractor has violated the ostensible subcontractor rule as of the date of bid submission; SBA won’t consider any changes that come later.

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