U.S. Small Business Administration: Services

The Office of Hearings and Appeals (OHA) sits within SBA's oversight and advocacy functions and adjudicates challenges to agency determinations affecting small business status, eligibility and loan review. Appeal routes are published for 8(a) eligibility, NAICS code designations, women-owned small business designations, veteran-owned status and Paycheck Protection Program loan review decisions. Each route has its own filing deadline, service requirements and content rules set out in 13 C.F.R. Part 134. Filings are generally accepted by email at ohafilings@sba.gov, and appeals may also be transmitted through the Hearing and Appeals Submission Upload (HASU) application in PDF format up to 100 MB.

• 8(a) eligibility appeals
• NAICS code appeals
• WOSB and EDWOSB appeals
• VOSB and SDVOSB protests and appeals
• PPP final loan review appeals

This service allows a firm to appeal a formal determination made by an SBA Government Contracting Area Office or an SBA Disaster Area Office. An appeal must reach OHA within 45 calendar days of receiving the determination, by 5 p.m. ET. Appellants filing early graduation or termination appeals must also serve SBA's Director of Business Development and the Associate General Counsel for Litigation, while appeals of denial of programme admission, suspension of assistance or waiver denial go additionally to the Associate General Counsel for Procurement Law. The appeal must include a certificate of service, a copy of the determination under appeal, the petitioner's full name and a statement of the basis for OHA's jurisdiction.

• 45 calendar days to file
• Filed by email to ohafilings@sba.gov or via HASU
• Certificate of service required
• Copy of the SBA determination required

Each North American Industry Classification System code identifies an industry and carries a corresponding receipts-based or employee-based size standard. In a small business set-aside procurement the contracting officer designates the applicable NAICS code, and any offeror or other interested party adversely affected by that designation may appeal it to OHA under 13 C.F.R. 121.402 and 121.1102. Appeals must be filed within 10 calendar days of the issuance of the solicitation, or of an amendment affecting the code, and must be received by 5 p.m. ET on the tenth day. Copies must also be sent to the contracting officer who made the designation and to SBA's Associate General Counsel for Procurement Law.

• 10 calendar days to file
• Email ohafilings@sba.gov or fax 202-205-7059
• OHA telephone 202-401-8200 to confirm receipt
• Appeal states why the designated code is incorrect

Parties may appeal a Women-Owned Small Business Concern (WOSB) or Economically Disadvantaged WOSB (EDWOSB) designation following a protest determination. The appeal must be filed with OHA within 10 business days of receiving the protest determination under 13 C.F.R. 134.703, by 5 p.m. ET. Copies must be served on SBA's Director of the Office of Government Contracting, the contracting officer responsible for the procurement, the protested concern or protestor, and the Associate General Counsel for Procurement Law. Programme regulations are at 13 C.F.R. Part 127.

• 10 business days to file
• Certificate of service and copy of the protest determination
• Solicitation number and contracting officer details
• Legal argument and requested relief

SBA provides for protests against the status of a Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOSB) awarded a federal procurement. For sole source procurements, SBA, the VA or the contracting officer may protest the proposed awardee's status; for all other procurements any interested party may protest, including an unsuccessful offeror. Protest grounds cover veteran status, ownership and control of at least 51 per cent by veterans or service-disabled veterans, undue reliance on an ostensible subcontractor, and joint venture arrangements. Separately, denials of certification or decertification under the SBA Veteran Small Business Certification Program may be appealed to OHA as a VSBC appeal.

• Status protests for sole source and other procurements
• Veteran status allegations require VA, DoD or NARA documentation
• Ownership and control threshold of 51 per cent
• VSBC certification and decertification appeals

OHA has jurisdiction over appeals where SBA has issued a borrower a final Paycheck Protection Program loan review decision. Grounds include findings that the borrower is ineligible for a PPP loan or for the amount received, used proceeds for unauthorised purposes, or is ineligible for the forgiveness amount determined by the lender or subject to a full denial. Borrowers have 30 calendar days after receipt of the decision to file, and appeals must be submitted at appeals.sba.gov; filings received by other means may be rejected. OHA does not review decisions made by lenders, and to extend the loan deferment period an appellant must give the lender a copy of the appeal.

• 30 calendar days to file
• Filed at appeals.sba.gov only
• Copy of the final SBA loan review decision required
• Lenders and individual owners lack standing

SBA supports its lending partners with resources, training and guidance, covering standard operating procedures, policy updates and Lender Match. The agency guarantees that loans issued by participating lenders will be repaid, which allows lenders to offer lower rates and longer terms, gives security through SBA purchase of the guaranteed portion on default, and extends lending to borrowers they might not otherwise serve. Three business loan programmes are available to partners — 7(a), CDC/504 and Microloan — each with its own lending practices and lender eligibility requirements. Lenders originating PPP loans also have obligations to mitigate fraud, waste and abuse in SBA programmes.

• 7(a) loan programme for banks, savings and loans, credit unions and specialised lenders
• CDC/504 loan programme for designated Certified Development Companies
• Microloan programme: loans of $50,000 or less via intermediary lenders
• Lender reports, forms and SOPs
• Training on demand and fraud response guidance
• Information on SBICs and surety bonds

SBA publishes procurement, programme administration and contract administration resources for federal contracting officials working towards their agency's small business contracting goals. Each federal agency has a statutory annual goal for awarding contract dollars to particular groups of contractors, and SBA's Office of Government Contracting and Business Development determines how agency goals are set. Agencies report awards over $25,000 through the Federal Procurement Data System Next Generation, and SBA evaluates that information and publishes goaling scorecards; an agency failing to achieve a proposed prime or subcontract goal must submit a justification and corrective action plan to SBA. Contracting officials are required to use the Small Business Search as part of market research, and may seek advice from an agency small business specialist or an SBA Procurement Center Representative.

• 23% of prime contracts for small businesses
• 5% for women-owned small businesses (prime and subcontracts)
• 5% for small disadvantaged businesses
• 3% for HUBZone small businesses
• 5% for service-disabled veteran-owned small businesses
• Guidance on set-aside and sole-source procurement

SBA has implemented regulations, following an executive order, that allow disaster loan borrowers to bypass certain state and local permitting requirements where approvals have not been obtained after an extended period. Borrowers who applied for a local permit more than 60 days ago without receiving approval may qualify for a builder self-certification option. The process involves confirming eligibility with the contractor, completing a Disaster Loan Modification (Builder Certification) form signed by the borrower and a Builder Certification signed by the builder, then uploading both to the SBA Loan Portal. A case manager contacts the borrower with next steps, and loans previously cancelled may be eligible for reinstatement on request through the portal.

• Eligibility: permit pending more than 60 days
• Two signed forms required
• Submitted through the SBA Loan Portal
• Reinstatement possible for cancelled loans