New SBA Recertification Rules: Key Changes for Government Contractors in 2025
**SBA’s Proposed Rule on Size and Status Recertifications Brings Uniformity and Change to Government Contracting Landscape**
The Small Business Administration (SBA) has proposed a new regulation aimed at simplifying and standardizing the recertification processes for small businesses and their socioeconomic status under various programs such as the 8(a) Business Development Program, HUBZone, women-owned small businesses (WOSB), and service-disabled veteran-owned small businesses (SDVOSB) [1].
### Key Changes:
1. **Unified Recertification Standards**:
– The SBA seeks to consolidate size and status recertification standards across all small business programs into one regulation, 13 C.F.R. § 125.12 [1][3].
2. **Recertification Requirements**:
– Contractors are required to recertify their size and small business program status within 30 days of a merger, acquisition, or sale of or by the concern or an affiliate that results in a change in controlling interest [1][3][5].
3. **Impact on Eligibility**:
– If a business is found to be “other than small” or no longer meets the applicable socioeconomic status, it will be ineligible to submit offers for set-aside contracts after the triggering event occurs [1][3][5].
4. **Timeline for Recertification**:
– Long-term contracts require a size and status recertification within 120 days of the end of the fifth year of the contract. Contracting officers, however, can request recertification outside of this window if deemed necessary [1].
### Implementation Details:
– The proposed rule aims to address the widespread confusion and frustration over the current piecemeal regulations and case law.
– The regulation may introduce more uniformity but also has the potential to create more issues for small businesses [1].
### Effective Dates:
– The proposed rule was published in August 2024, and a final rule was issued subsequently with some changes effective January 16, 2025, with certain aspects of the recertification rule having a one-year grace period [3][5].
The SBA’s new regulation seeks to streamline and standardize the recertification process, potentially simplifying compliance for small businesses while ensuring that the eligibility criteria for participating in various programs are clear and consistent.