On Tuesday, after over four (4!) years, the Small Business Administration (SBA) has finally issued proposed rules that would amend the regulations for certification of woman-owned small businesses (WOSBs) and economically-disadvantaged WOSBs (EDWOSBs). Fans of government socio-economic programs may recall that the 2015 National Defense Authorization Act (NDAA) authorized three changes to the WOSB program: 1. authorizing sole-source authority, 2. eliminating the option for WOSBs and EDWOSBs to self-certify, and 3. allowing SBA to implement a new certification process. SBA published a final rule implementing sole-source authority in September 2015 that became effective in October of that year, but had not taken action on the other two changes until yesterday, when the proposed rule was issued.

Highlights of the proposed rule include:

  • SBA will provide a free electronic application process to all firms seeking to be certified as WOSBs or EDWOSBs;
  • Applicants will have the opportunity to request reconsideration of an initial decline decision;
  • Interested parties will have the opportunity to challenge the WOSB/EDWOSB status of an apparent successful offeror;
  • SBA will also use existing certifications from Federal and State government entities, including 8(a), DOT/DBE, VOSB/SDVOSB (for women veterans), and HUBZone certifications in lieu of an SBA-only process;
  • SBA will continue to accept third-party certifications (TPCs) from approved entities;
  • WOSBs/EDWOSBs will be required to re-certify their eligibility every three years;
  • The adjusted net worth eligibility thresholds across the EDWOSB, 8(a), and DOT/DBE programs will be aligned.
So, why now, after all this time? Maybe it was the Government Accountability Office report issued back in March entitled “Woman-Owned Small Business Program: Actions Needed to Address Ongoing Oversight Issues” that finally spurred SBA to action. Maybe this had been in the pipeline for a while (SBA said it was 1-2 months away from issuing a rule all the way back in October 2017!). Regardless, the proposed rule is out, which means that SBA may very well meet its target of implementing the new certification processes by January 1, 2020. Only…5 years and 12 days after the 2015 NDAA was passed. And they say government works slowly!
The proposed rule can be downloaded here. Comments are due July 15, 2019.