Today we review more evidence reminding small business owners to get their house in order when it comes to questions of “ownership and control” in the eyes of the Small Business Administration (SBA). Failing to plan can mean lost contracts and – even worse – losing your small business status and the opportunity for lucrative set-aside contracts.
When we last visited this issue in April, the SBA determined that Precise Systems, Inc. was ineligible for a $134 million State Department SDVOSB set-aside contract because its employee stock ownership plan raised concerns over whether the company’s service-disabled owner exercised proper “ownership and control” under the applicable SBA rules.
After the Court of Federal Claims remanded the issue for further interpretation, the SBA doubled-down on its authority to interpret questions of small business ownership and control.
Keep reading this article at: http://www.mondaq.com/article.asp?articleid=430986