SBA Proposal Would Open Exemption To Large Contractors

February 5, 2015 – In The News

Reginald Jones was quoted in the Law360 article “SBA Proposal Would Open Exemption To Large Contractors.” Full text can be found in the February 5, 2015, issue, but a synopsis is below.

The U.S. Small Business Administration recently proposed altering its regulations to establish a single mentor-protege program that would allow joint ventures involving large companies to compete for contracts formerly reserved for partnerships involving small, disadvantaged businesses.

Reginald Jones explained that the new rule will allow large companies to enjoy an exemption reserved for economically disadvantaged businesses through joint ventures.

"The biggest impact of this proposed regulation is that it will extend the broad exemption from the rules of affiliation to all Small Business Mentor Protege Program participants, not just 8(a) Mentor-Protege Program participants. That is a huge change,” Jones stated.

Jones noted that the proposed rule change would make it possible for large businesses to chase more federal projects as prime contractors and subcontractors. He said the new rule would likely result in a "flood" of new applicants.