TGI Tribal Government Institute Conference
Comments Sought on New SDB Rule
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October 8, 2008
The Small Business Administration will no longer verify the status of companies seeking certification as small disadvantaged businesses, shifting the time-consuming and costly application process to the companies themselves or to third parties.
In an interim final rule published in the Federal Register on Friday, SBA explained that the value of the small disadvantaged business designation has tailed off in recent years as the financial incentives have disappeared or been ignored.
"The SDB certification process is time-consuming and costly for small businesses and offers little to no benefit," the agency noted in its explanation of program changes.
As of Oct. 3, companies seeking to obtain federal prime or subcontracts can self-certify their status as small disadvantaged businesses, an option that has been available since 2004, or use a third-party private certification firm. In limited circumstances, the procuring agency can certify the company.