It doesn’t take too long to find a blog post where we’ve discussed SBA’s Service-Disabled Veteran-Owned Small Business (SDVOSB) full-time devotion requirement. For a service-disabled veteran (SDV) to meet the SDVOSB control requirements, the SDV must control “the management and daily business operations” of the SDVOSB. This requires the SDV to be fully devoted to the SDVOSB. As a quick refresher on the full-time devotion requirement, a qualifying veteran “may not engage in outside employment that prevents [them] from devoting the time and attention to the concern necessary to control its management and daily business operations.” Further, the veteran must be able to “devote full-time during the business’s normal hours of operation” or SBA will assume lack of control. 13 C.F.R. 128.203(i). The same rule applies for the WOSB and 8(a) programs. In past decisions, SBA was OK with a veteran juggling multiple jobs as long as the hours didn’t overlap. But a recent decision shows that it may be possible to overcome this assumption.
Continue readingTag Archives: control
OHA: SBA VetCert Review of Bylaws Was too Strict
We have previously blogged on SBA OHA decisions where an applicant was denied certification in one of SBA’s socioeconomic programs because the applicant failed to meet SBA’s control requirements. (You can check out some recent posts here and here). These decisions served as friendly reminders that before submitting an application, future applicants should take a closer look at its governing documents for potential concerns SBA may raise in its review.
A recent OHA decision, however, suggests that SBA’s strict interpretation of an applicant’s governing documents isn’t always the correct interpretation.
Continue readingSBA Adds Affiliation Questions to Revised All Small Mentor-Protege Template
With little fanfare, the SBA has updated the template for agreements under the All Small Mentor-Protégé Program (ASMPP). The new template adds a series of check box-style questions, mainly about potential affiliation between the mentor and protege.
Be sure to check out the new template if you are working on a mentor-protégé agreement.
Continue readingOHA: Owners Did Not Have Enough Managerial Experience to Qualify Concern as a WOSB
SBA’s socio-economic set-aside programs mandate compliance with multiple control requirements. An important one stipulates that a woman owner of a WOSB (or a veteran for a SDVOSB or a disadvantaged owner for an 8(a) business) must have the “managerial experience of the extent and complexity to run the concern.”
But what, exactly, does this requirement entail? A recent OHA case provides some important guidance.
Continue reading