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Small Bus Administration Proposes Rule to Reconcile and Clarify Ownership and Control Standards

Today, our colleagues Richard Oliver and Travis Mullaney published their Alert titled SBA Proposed Rule Standardizes SDVO SBC Ownership & Control Standards. The Small Business Administration’s (SBA) proposed new rule would reconcile and clarify the ownership and control standards required for qualify as either a Veteran-Owned (VO) or Service-Disabled Veteran-Owned (SDVO) Small Business Concern (SBC) under the programs offered by the SBA and the Department of Veterans Affairs (VA).

Key takeways are:

  • SBA’s proposed rule would significantly revise ownership and control rules, adopting language from VA and SBA 8(a) Business Development program regulations
  • SDVO SBCs should avoid super majority shareholder voting requirements 
  • New rule would create rebuttable presumptions for control regarding normal working hours and the reasonable commute to a firm’s headquarters

Additional Sources:  Changes for Bid Protests in FY 2018 NDAA