SBA Proposes Rule That Will Change M&A Landscape for Small Business, Recertifications to Impact Award Eligibility
The Small Business Administration ("SBA") recently issued a proposed rule that changes the effect of a concern's size recertification following mergers and acquisitions ("M&A") activity . Notably, the proposed rule is ostensibly an omnibus proposal as it covers a host of issues under SBA's socio-economic contracting programs. The proposed rule, for example, includes changes to SBA's negative control affiliation provisions ( discussed here ), joint venture rules, mentor-protégé rules, and others. Comments on the proposed rule are due on or before October 7, 2024. SBA's recertification rules have long been the subject of debate, particularly as it relates to eligibility after a concern recertifies as an "other than small business" following an M&A event. Under the current regulatory regime, a small business is generally considered small for the life of the contract, including for orders issued against a long-term contract. Thus,...