OHA Ruling Shows Danger in Proposed SBA Rule

PM Legal Minute LogoBy Jon Williams, PilieroMazza

OHA Ruling Shows Danger in Proposed SBA Rule By Jon Williams As the saying goes, unless you have been living under a rock, then you know that SBA recently proposed new rules to create a mentor-protégé program for all small businesses.   Less well known, however, is a provision included with the proposed mentor-protégé rules that would dramatically alter how applicants in non-designated groups qualify for the 8(a) Program. SBA is seeking to change the rules for establishing social disadvantage so the agency could reject a claim of social disadvantage if SBA believes the applicant has not sufficiently rebutted an alternate theory by SBA for the claimed discrimination.

In our comments to the proposed rule, we opposed this change because we believe it would unfairly increase the evidentiary burden for applicants. It will also create a slippery slope that will make it much easier for SBA reviewers to reject what an applicant has offered to show social disadvantage, even when the information is uncontroverted.

Read the full story here.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s