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

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the SDB program is still alive and kicking, the rules will be simplified to eliminate a lot of language that is simply no longer applicable.

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

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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5 Things You Should Know: 8(a) Program Eligibility

Editor’s Note: You can find our updated post on 8(a) Program Eligibility here.

In a recent post, we discussed the basics about SBA’s 8(a) Business Development Program. This follow-up posts discusses 8(a) eligibility requirements in greater detail.

To qualify for the 8(a) Program, a firm must be a small business that is unconditionally owned and controlled by one or more socially- and economically-disadvantaged individuals who are of good character and citizens of the United States and that demonstrates a potential for success.

What does this really mean? Here are five things you should know about 8(a) Program eligibility.

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SBA Considering 8(a), HUBZone Changes

The SBA is considering making changes to improve its socioeconomic programs–particularly the 8(a) and HUBZone Programs.

In a talk yesterday at the 2017 Navy Gold Coast Procurement Conference, Robb Wong, the SBA’s recently-appointed Associate Administrator, Office of Government Contracting and Business Development, discussed some of the big changes the SBA is considering.  And to my ears, at least, a lot of what Mr. Wong said makes good sense.

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

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 Improvements Needed, Says SBA OIG

8(a) Program improvements are needed to allow more disadvantaged firms to receive 8(a) contracts, according to a recent report issued by the SBA Office of Inspector General.

In its report, the SBA OIG credits the SBA with positive steps taken to improve the 8(a) Program, but says that more must be done to ensure that 8(a) business development assistance reaches more 8(a) Program participants.

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8(a) Program Fraud: Contractor Indicted; Government Seeks $9 Million

An Idaho contractor has been indicted on federal charges stemming from allegations that she fraudulently lowered her personal net worth in order to enable her company to be certified in the SBA 8(a) Program and the Department of Transportation’s Disadvantaged Business Enterprise Program.

According to a Department of Justice press release, the 8(a) and DBE fraud netted the contractor upwards of $9 million–and the Government wants its money back.

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