Tag Archives: 8(a) applications

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

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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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SBA Area Office Double Counted Revenue in Denial of 8(a) Application, Says OHA

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SBA sometimes makes mistakes in the 8(a) application process, but the appeals process may be able to remedy those miscues. Recently, an applicant appealed the SBA’s denial of her 8(a) status based on net worth. She argued that the SBA Area Office had double counted the value of her rental property, which automatically disqualified her from being found economically disadvantaged.

SBA’s Office of Hearings and Appeals (OHA) agreed and remanded the denial decision.

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8(a) Program: SBA Final Rule Makes Important Changes

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The 8(a) Program regulations will undergo some significant changes as part of the major final rule recently released by the SBA, and effective August 24, 2016.

Here at SmallGovCon, we’ve already covered big changes to the SDVOSB Program and HUBZone Program brought about by the new SBA rule.  But the 8(a) program is affected by the new rule too, and important changes involving eligibility, the application process, sole source awards, NHOs, and more will kick in later this month.

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8(a) Program Participation Down 34% Since 2010

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Participation in the SBA’s 8(a) Program has declined from about 7,000 firms in 2010 to only around 4,500 today–a sharp drop of approximately 34% in only six years.

These startling numbers come from a recent SBA Office of Inspector General report, which focuses on whether the SBA properly documented the reasons for admitting certain 8(a) participants.  While that matter is interesting in its own right, the most revealing part of the SBA OIG report is the rapid decline in 8(a) Program participation, and the SBA’s plans to reverse it.

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8(a) Program Denial: Federal Lawsuit Available, Says SBA OHA

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An 8(a) Program applicant may challenge the SBA’s denial of its application in federal court if the SBA Office of Hearings and Appeals lacks jurisdiction to hear the case.

According to a recent OHA decision, although OHA’s own jurisdiction in 8(a) denial matters is limited, a rejected applicant “is not utterly without recourse” because relief can be sought in court.

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8(a) Program: Accent, Lack of English Proficiency Not Evidence of Bias

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A Bulgarian immigrant’s thick accent and lack of English proficiency were not evidence of bias, and did not support the immigrant’s 8(a) Program application.

In a recent 8(a) Program decision, the SBA Office of Hearings and Appeals expressed sympathy for the language difficulties many immigrants face, but held that such difficulties, by themselves, do not constitute evidence of “social disadvantage” for 8(a) Program purposes because the 8(a) Program requires a showing of bias or prejudice.

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