SBA, without much commentary, recently removed the so-called reasonable commute requirement for service-disabled veterans (SDV) who owned or managed service-disabled veteran-owned small businesses (SDVOSB). This rule used to require that veterans live near the principal office or job site, but it sometimes caused issues for SDVOSBs because of how restrictive it could be. Thankfully, SBA has removed this requirement. Since SBA brought little attention to this change, we want to highlight it in this post and say farewell to this SDVOSB requirement.Continue reading
Tag Archives: SDVOSB control
Franchise Agreement Terms Sink Company’s SDVOSB Application
It’s a refrain that my colleagues and I have often heard: if you’re a franchisee, it can be really, really hard–perhaps almost impossible–to be verified as a service-disabled veteran-owned small business.
A recent case demonstrates the difficulties in obtaining SDVOSB status as a franchisee. In the case, the SBA’s Office of Hearings and Appeals held that the Center for Verification and Eligibility had correctly denied a company’s SDVOSB application because, in the eyes of the CVE and SBA, the terms of the franchise agreement impeded the veteran’s control of the company.Continue reading
SBA Updates Veteran Surviving Spouse Rule
A proposed rule from SBA will make changes to the SDVOSB rules. SBA has modified its rules allowing surviving spouses to continue owning Service-Disabled Veteran-Owned Small Businesses after the veteran owner has passed away. This should provide some help to spouses of disabled veterans. SBA has updated a few dollar thresholds as well.Continue reading
SBA’s SDVOSB “Normal Business Hours” Rule Needs Fixing–Here’s How
SBA’s regulations for service-disabled veteran-owned small businesses create a rebuttable presumption that a service-disabled veteran doesn’t control the company if the veteran is unable to work normal business hours in the company’s industry.
The rule sounds reasonable at first blush, but as a recent SBA Office of Hearings and Appeals case demonstrates, the SBA may apply the presumption even to a one-person start-up with no contracts. Not many people can afford to quit their day jobs before their businesses truly get off the ground–creating a real conundrum for SDVOSB start-ups.
For the sake of fairness, the SBA’s Normal Business Hours rule needs fixing, pronto. Here’s how to do it.Continue reading
Event: SDVOSB Programs Webinar, Hosted by Govology
The federal government spends more than $20 billion annually on contracts with service-disabled veteran-owned small businesses. But the rules governing SDVOSB eligibility can be complex and confusing – starting with the fact that the government runs not one, but two SDVOSB programs.
On January 14, join me for a webinar, hosted by our friends at Govology, covering the ins-and-outs of Uncle Sam’s SDVOSB programs. In this session, I will demystify the key SDVOSB eligibility requirements in plain English and provide an update on some major pending changes to the SDVOSB programs. It’s easy to register: just follow this link. I hope to see you (virtually, anyway) on January 14!
OHA: Multiple Service-Disabled Veterans Control Company, Despite Internal Dispute
Control over a Service-Disabled Veteran-Owned Small Business can be held by multiple service-disabled veterans. Having control reside in multiple individuals can make things a little more complicated, though. SBA Office of Hearings and Appeals recently examined a situation where multiple service-disabled veterans shared control of a company, but did not have a united front when responding to information requests concerning a company’s eligibility.Continue reading
SBA Rule Tamps Down Joint Venture Unequivocal Control Requirement
The SBA’s new rule on Consolidation of Mentor-Protégé Programs contained a lot of updates. One of those concerned the level of control that a lead joint venture member has to have over a joint venture.
In particular, SBA now says that the lead venturer doesn’t have to have unequivocal control as the Office of Hearings and Appeals had suggested in the past. The other joint venture partners can have some say in the joint venture, but how much?Continue reading