December 12, 2019
The Small Business Administration (SBA) recently finalized rules that aim to improve the HUBZone program. These rules will hopefully address issues within the federal contracting market to help “provide clarity on a number of issues, particularly how small businesses may comply with the subcontract limitation requirements and how independent contractors may be treated”. The new rules have been in the process of approval for years, which may have been due to a variety of factors. But either way, there are many who are pleased to have the clarity these rules provide.
The file rule is set to take effect on January 6th, with a transition period of two years thought January 6th, 2022. During the period of transition, businesses may choose between calculating receipts on a 3 or 5 year average, meaning that a firm could exceed their size standards during that time, but still retain their small business status as long as their average is within the limit. These new rules should expand the pool of small businesses for the federal government to work with, which may result in more contract opportunities for small businesses.
To read more about the SBA’s final rule and changes to contracting programs, click here.