In a proposed rule in August of 2024, SBA has unveiled a brand new regulation related specifically to recertification of size and status. A frequent question of federal contractors is whether they can continue to be small, or maintain a specific socio-economic status (i.e., WOSB, SDVOSB etc.) after a change in ownership or business structure. The SBA’s size and status recertification standards are currently found in multiple places: the size determination timing regulations, each socio-economic status regulation, and of course in case law. But this would presumably create a one stop shop for size recertification questions, while also changing some of the long relied-upon standards.
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SBA Proposed Rule: SBA Plans to Relax 8(a) Program Restrictions
The SBA recently dropped a large proposed rule that it grouped mainly under the HUBZone program, but actually touches on almost every SBA socioeconomic certification. So, it should come as no surprise that the SBA’s 8(a) Program is facing some potential changes based on this proposed rule. There are quite a few proposed updates to the 8(a) Program. We wanted cover just a few that really stood out to us here at SmallGovCon. Be sure to review the whole rule if you want to comment on any of these 8(a) changes.
Continue readingSBA’s 7(a) and 504 Loans Proposed Rule: Affiliation Based on “Control” Soon to be a Thing of the Past
One of the things the Small Business Administration may be best known for is its small business loan programs, such as the section 7(a) and 504 Loan Programs. These programs have been a staple of the small business landscape for quite some time. Unsurprisingly though, there are multiple rules associated with them. Among these myriad rules and requirements, is the determination as to whether a loan applicant is a small business. One of the things that can affect whether a business is small is affiliation with other businesses push that company over the size limit. In a new proposed rule, it appears the SBA plans to dramatically scale back the ways that a business may be seen as affiliated, by practically getting rid of affiliation through “control”–only for for loan purposes, not procurement purposes. As this presents quite a shift in operations, all of us here at SmallGovCon wanted to make sure we have provided you, our readers, a breakdown of these proposed changes to a cornerstone of the SBA.
Continue readingPay it Forward, or Pay the Price, Says SBA in Proposed Rules for 8(a) Tribal Entities
In a recent notice for Tribal consultation and request for comments, as well as a published proposed rule, the SBA seems to be signaling an increase in oversight of Native or Tribally-owned entities who are 8(a) Participants. SBA has an apparent goal of enforcing more stringent repercussions for not fully adhering to some stipulations that exclusively pertain to Native or Tribally-Owned participants in the 8(a) Business Development Program. While not final yet, the SBA has placed these potential consequences, the reasoning behind them, and the proposed rule out in the public for discussion. As these actions may present some rather drastic changes for some 8(a) Participants, I have done a quick breakdown of them here.
Continue readingFAR Proposed Rule: Incumbent Service Workers Need to be Hired
Once again, the incumbent service worker rule has had its pendulum swing back to the hiring of incumbent workers, reflecting a “general policy of the Federal Government that service contracts which succeed contracts for the same or similar services, and solicitations for such contracts, shall include a non-displacement clause.” This proposed rule would insert a contract clause requiring contractors who are awarded a service contract with an incumbent on it, to offer employment to the incumbent contractor employees, for performance of the contract. This is of course quite the shift from current regulations, but it also places many new contract compliance requirements on contractors awarded a new contract as they try and stand up performance.
Continue readingIndustrial Expansion: Proposed New Size Standards for Manufacturing and Other Industries with Employee-Based Size Standards
The SBA’s regulations state it will examine monetary-based size standards (e.g., receipts, net income, assets) at least once every five years and determine if adjustments are needed to those standards at such time. 13 C.F.R. § 121.102. But what about employee-based size standards? In fact, the same rule applies for reviewing and adjusting those standards as a result of the Small Business Jobs Act of 2010. On April 26, 2022, the SBA published its proposed rule to change the size standards for a number of employee-based size standards for manufacturing and other industries. Let’s look at these changes.
Continue readingWhite House Proposes Reforms to Increase Dollars to Underserved Small Businesses
Small businesses are often seen as the backbone of the economy. Contained within the category of small businesses are what are known as Small Disadvantaged Businesses or SDBs. Currently, the federal government has a goal to award 5% of its contracting dollars to SDBs. The White House is seeking to triple this number by 2025. The White House recently released a Fact Sheet as to how it intends to meet this goal. So, let’s dive into some of the specifics.
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