Tag Archives: SBA

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

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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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PPP Update: New $20 Million PPP Loan Limit for Corporate Groups

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On Monday, May 4, the SBA will issue another Interim Final Rule updating the Paycheck Protection Program—this time limiting the “aggregate amount of PPP loans that any single corporate group may receive.”

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PPP Loan Payback? Safe Harbor Provision Lets Companies Pay Back “Unnecessary” Loan Money

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**Update 5/6/2020: As of May 5, the SBA updated its PPP FAQ’s, announcing its intention to extend the PPP Safe Harbor period to May 14. This post has been updated to reflect this change.

***Update 5/14/2020: As of May 14, the SBA updated its PPP FAQ’s once again, announcing its intention to extend the PPP Safe Harbor period to May 18. This post has been updated a second time to reflect this change. The SBA has also supplemented its guidance on the Safe Harbor Provision, as discussed here.

If you’re a parent, you might be familiar with the SBA and Treasury Department’s current strategy to crack down on businesses taking Paycheck Protection Program funds when they don’t qualify: if ineligible businesses ‘fess up and return the money by May 14, nobody gets in trouble.

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SBA Updates Interim Paycheck Protection Program Rule for Self-Employed Individuals

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As the social isolation saying goes: “Another day; another clarification from the SBA regarding the Paycheck Protection Program.” Alright, maybe that saying hasn’t caught on, yet. Nevertheless, the SBA did publish additional guidance specific to sole proprietors and general partners applying to the Paycheck Protection Program (PPP).

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COVID-19 & SBA 8(a) Program Suspensions: FAQs

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If you are a government contractor participating in the Small Business Administration’s 8(a) Business Development Program, there is a good chance you received an email this week about COVID-19 and the SBA’s 8(a) suspension authority. What is this authority and, more importantly, how would suspension impact your 8(a) status?

In this post, we aim to provide some answers to frequently asked questions about these suspensions.

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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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In the Market for Freeze-Dried Ice Cream? SBA’s Proposed Rule on Surplus Property May Be For You!

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This month, the SBA proposed a new rule to expand access to Federal surplus personal property for veteran-owned small businesses, 8(a) Program Participants, and more.

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