The Small Business Administration published an interim final rule that allows firms to self-certify their status as small disadvantaged businesses (SDBs) for subcontracting purposes without first receiving a SDB certification from the agency. The rule permits a subcontractor to claim it qualifies as an SDB if it believes in good faith that it is owned and controlled by one or more socially and economically disadvantaged individuals.  The SBA said in the past only those firms that had been certified by the SBA could certify themselves as SDB for federal prime contracts and subcontracts but now the new rule is necessary because it had to cease performing certification as of the end of the FY 2008 because current funding for the SBA program was “unreliable and unpredictable” where there was no assurance other agencies would continue funding the SBA program.  Rather than providing the “costly, time consuming” process of certification the SBA says self certification in good faith will be “cheaper, quicker and less burdensome” for all concerned.

In a separate action, the SBA issued a final rule authorizing federal agencies to set aside contracts for women-owned small businesses (WOSBs) in industries where such firms are shown to be underrepresented and the procuring agency determines that a set-aside would cure past discrimination. Section 8(m) of the Small Business Reauthorization Act of 2000 allows for set-asides on procurements up to $3 Million ($5 Million for manufacturing) for WOSBs who are at least 51 percent unconditionally and directly owned and controlled by women who are US citizens. To qualify as an economically disadvantaged women-owned business (EDWOSB) at least 51 percent of the owners must also show an impaired ability to compete due to diminished capital and credit opportunities as well as a personal net worth of less than $750,000, excluding ownership in the businesses and equity in their homes (Fed. Reg. 56940).

{TAG_FORM_TITLE}