SBA’s Final Size Standard Recertification Rule: What Private Equity Companies Need to Know

We previously discussed the US Small Business Administration’s (SBA) proposed rule updating the regulations regarding government contractor size and small business program status recertification. The SBA has now issued the final version of that rule.

In finalizing the rule, the SBA elected to delay implementation of certain changes to the recertification process until January 17, 2026. These include the new blanket prohibition disqualifying contractors that hold set-aside multiple award contracts from being eligible for set-aside options or orders under that contract if the contractor has made a recertification that the contractor is no longer small. This delay provides a strong incentive to complete a transaction that would otherwise trigger a disqualifying certification prior to January 17, 2026, although there remain obstacles to the target small business maintaining its current revenue streams.

This client alert provides more detail on the impact of the final rule on transactions involving small business government contractors.

In Depth

The rule’s general policy revisions remain unchanged in the final version. It impacts small business government contractors who hold multiple award vehicle contracts, rather than single award contracts…..

See the full post here.

Sources: JD Supra and McDermott Will & Emery

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