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Tag: SBA

SBA Halts New Applications for 8(a) Program: What You Need to Know

The Small Business Administration (SBA) has put a temporary hold on accepting new applications for the 8(a) small business program. This move comes in the aftermath of a significant court decision that found parts of the program unconstitutional. (Washington Technology August 21, 2003)

The crux of the matter lies in the SBA’s utilization of the “rebuttable presumption” process, which allowed many companies to be certified as small, disadvantaged businesses without substantiating their social disadvantage. However, a recent court case, involving Ultima Services, a non-8(a) company, challenged this process. The court ruled in favor of Ultima Services, asserting that the use of rebuttable presumption violated their Fifth Amendment rights. Consequently, the SBA has been compelled to halt the acceptance of new 8(a) program applications. (ibid)

If your company was certified through the rebuttable presumption process, there are specific actions you must take to continue in the 8(a) program. The newly released guidance requires affected businesses to submit a “Social Disadvantaged Narrative.” This narrative should encompass the identities forming the basis of your social disadvantage, detailed accounts of discriminatory incidents related to education, employment, or business history, including dates, locations, parties involved, conduct details, and motivations behind the bias or discrimination. You should also elucidate how these incidents impacted your business progression. (ibid)

Existing applicants can proceed with their applications, though additional information might be needed. For those already within the 8(a) program, the narrative submission is not obligatory if previously completed. (ibid)

SBA is closely collaborating with the Justice Department to chart the course ahead in response to this court decision. Despite the temporary suspension of new applications, the agency is working on directives for agencies to continue awarding contracts to 8(a) firms. (ibid)

Remember, this situation is evolving. A hearing on August 31st could bring about changes, and SBA’s forthcoming guidance for contract awards to 8(a) firms remains eagerly anticipated. Furthermore, it’s important to note that the court’s ruling doesn’t affect 8(a) firms owned by Alaska Native Corporations or tribally-owned entities. They can continue business as usual. (ibid)

Stay tuned for updates as this story unfolds, and ensure you’re up to speed on the latest developments in the 8(a) program landscape. Should you have questions concerning the newly released guidance requirements, give us a call.

The SBA is serving our entrepreneurial veterans

Last Friday, the Small Business Association (SBA) announced that it would invest $3.5 million in grant funding to create veterans business outreach centers (VBOCs) in seven new locations, including Alaska, California, Colorado, Iowa, Nebraska, Nevada, and South Carolina. The purpose of this investment is to expand entrepreneurial training and counseling services for veterans and military spouses who own and operate small businesses. (ExecutiveGov April 24, 2023)

The VBOCs will assist veteran-owned small business in various aspects such as business planning, loan application, marketing and outreach efforts. Additionally, grants will be set up to support Boots to Business classes to help active duty service members transition and determine whether entrepreneurship is a practical transition strategy.(ibid)

Isabella Casillas Guzman, administrator of the SBA, stated that “with this expansion of our veteran-focused network of small business centers, we can help more transitioning service members, veterans, National Guard and Reserve members, and military spouses start and grow their businesses and advance our economy.” (ibid)

Interested in grant funding for your veteran owned small business? Give us a call.

A sneak peak into the updated HUBZone maps

According to a recent Small Business Administration release, new Historically Underutilized Business Zone (HUBZone) maps will go into effect on July 1, 2023. The maps spotlight employment and growth opportunities reserved for small businesses in disadvantaged communities. The new maps include data from the 2020 census and 3,732 newly designated communities. (EXECUTIVEGOV March 10, 2023)

“By channeling a record $14 billion in federal purchases to HUBZone-certified small firms last year, the Biden-Harris Administration gave a critical financial boost to hundreds of entrepreneurs in economically disadvantaged rural and urban areas,” said SBA Administrator Isabella Casillas Guzman. (ibid)

Loris Gillen, director of the Office of the HUBZone Program said, “for small businesses in new HUBZone areas SBA’s certification provides a gateway to billions of dollars in federal contracting opportunities, contributing to the economic growth and strengthening of underserved communities while also ensuring that employment opportunities benefit the people living in communities that most need positive economic impact.” (ibid)

Questions about HUBZone contracting opportunities or the certification process? Give us a call.

The SBA & DOD are teaming up to reinforce Small Business Development

On Friday, December 2, 2022, the Defense Department and the U.S. Small Business Administration signed a memorandum of understanding (MOU) for both agencies to better meet the needs of small businesses in the United States. The goal is to bolster small business development, both nationally and locally. (Executive Gov December 9, 2022)

Farooq A. Mitha, director of small business programs at DOD, and Mark Madrid, associate administrator of SBA’s Office of Entrepreneurial Development, signed the agreement at the Maryland Procurement Technical Assistance Center, a DOD-funded office in College Park, Maryland. (U.S. Department of Defense December 7, 2022 l DOD News)

There are over 90 Procurement Technical Assistance Centers throughout the US. These centers are set up to work with small businesses looking to obtain contracts with either DOD or other federal agencies. The centers are currently going through a rebranding and will move from Procurement Technical Assistance Centers to APEX Accelerators. The goal of the APEX Accelerators is to increase the number of businesses able to participate in the government marketplace. (ibid)

“One of the things that we want to make sure that we’re doing is providing resources and support to small businesses who are looking to do business with DOD, with other federal agencies, with state and local government and really reduce barriers to entry,” said Mitha. “And we can’t do that without our APEX Accelerators. And we can’t do that without a … strong partnership with the Small Business Administration and the [Small Business Development Centers] program.”  (ibid)

At the signing, Madrid said, “Today was about breaking down silos and working together because we’re all in it for the same reason. If you look at DOD [and] SBA, you look at the APEX Accelerators, you look at our SBDC network, we’re all trying to make government, and ultimately opportunities, more accessible to our small businesses at the end of the day. That’s what we achieved today.”  (ibid)

As a result of the MOU, Madrid is certain the DOD and the SBA will find many ways to better integrate training conducted by their APEX Accelerators and SBDCs. Their goal is to jointly conduct at least one national event a year together. (Executive Gov December 9, 2022)

SBA and DOD also launched a joint effort, called the Small Business Investment Company Critical Technologies Initiative, to drive investments in critical technologies that are key to national security. (ibid)

Are you looking to take advantage of one of the more than 90 APEX Accelerators resources and or the Small Business Investment Company Critical Technologies Initiative (SBICCT)? Give us a call.

GSA and the Small Business Administration are teaming up!

GSA is partnering with the Small Business Administration (SBA) to increase 8(a) contracting opportunities. The partnership makes it virtually effortless for GSA customers to use the MAS program to access various solutions from 8(a) contractors. (BUY.GSA.GOV l Interact November 18, 2022)

Once the implementation is complete the PA provides these benefits:

  • Increased opportunities for 8(a) contractors, allowing these contractors competition in a safe set-aside environment.
  • Accessibility to 8(a) contractors and various socioeconomic contractors, thus allowing for a vast range of products and services.
  • Increased ordering flexibility under the MAS Program.
  • Streamlined acquisition processes, thus incentivizing agencies to use 8(a) solutions.
  • GSA and SBA standardized processes for reaching an agreement on acquisition strategies. (ibid)

GSA is looking at a spring 2023 implementation of the Partnership Agreement. (ibid)

Are you an 8(a) contractor or have questions concerning your 8(a) contractor status? Give us a call.