HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs; Correction
The U.S. Small Business Administration (SBA) is correcting a final rule that was published in the Federal Register on December 17, 2024. The rule clarified and improved policies...
The U.S. Small Business Administration (SBA) is correcting a final rule that was published in the
Federal Register
on December 17, 2024.
( printed page 9674)
The rule clarified and improved policies surrounding a comprehensive revision to the HUBZone Program regulations published in 2019, among other changes. This document is making several technical corrections to the final regulations.
DATES:
Effective February 18, 2025.
FOR FURTHER INFORMATION CONTACT:
Alison Amann, Chief HUBZone Counsel, Office of General Counsel, (202) 205-6841,
alison.amann@sba.gov.
SUPPLEMENTARY INFORMATION:
On December 17, 2024, SBA published a final rule amending the regulations pertaining to the HUBZone program and SBA's other small business contracting programs to reduce unnecessary or excessive burdens on small businesses, clarify certain policies, and make the regulations governing SBA's contracting programs more consistent. 89 FR 102448.
The final rule amended § 121.1001 by adding paragraphs (a)(11) and (12), authorizing size protests in response to contract-specific size recertifications required by § 125.12. The language in these paragraphs was moved from proposed paragraphs (b)(12) and (13) that appeared in the proposed rule preceding the final rule.
See89 FR 68274, 68276 (Aug. 23, 2024). However, as stated in the preamble to the final rule, SBA meant to move proposed paragraphs (b)(12) and (13) to a single new paragraph (a)(11). The addition of paragraph (a)(12) was an error. This correction fixes that error. This correction also fixes the language in paragraph (a)(11) to reflect that the recertification requirements in § 125.12 specifically apply to “Set Aside or Reserved Awards” as defined in § 125.1. In addition, this correction amends § 121.1004 to add the corresponding timeliness requirements for protests filed under new § 121.1001(a)(11), which SBA indicated in the preamble of the final rule that SBA would include but were inadvertently left out of the final rule.
The final rule amended § 124.602 by increasing the threshold triggering a requirement to submit audited financial statements from $10 million to $20 million. The final rule made this change in paragraphs (a)(1) and (2), but the final rule inadvertently left out a corresponding change to the introductory language to paragraph (a). This correction fixes that omission by changing “$10,000,000” to “$20,000,000” in that introductory text.
The final rule provided that § 126.103 was amended by revising the definition for “Certification or Certify.” However, the amendment could not be incorporated because that definition does not exist in the current regulations. Instead, the current regulations define only “Certify.” This correction addresses that oversight.
The final rule amended § 126.200 by revising paragraph (c)(1) to implement certain changes related to the long-term investment provision. Paragraph (c)(1) contains an example that requires technical correction to reflect the changes in the final rule.
Who may initiate a size protest or request a formal size determination?
(a) * * *
(11) In connection with a size recertification relating to a Set Aside or Reserved Award (as defined in § 125.1 of this chapter), that is required by § 125.12 of this chapter, the following entities may file a size protest challenging the recertification:
(i) The contracting officer;
(ii) The SBA program manager relating to the Set Aside or Reserved Award at issue (
i.e.,
the Director of Government Contracting, the Associate Administrator for Business Development, or the Director of HUBZone, as appropriate), or the Associate General Counsel for Procurement Law; or
(iii) Any other contract or agreement holder, if it is a multiple award contract or agreement.
* * * * *
3. Amend § 121.1004 by redesignating paragraphs (a)(4) and (5) as paragraphs (a)(5) and (6), respectively, and adding a new paragraph (a)(4) to read as follows:
(4)
Protests relating to size recertifications.
Protests from another contract or agreement holder relating to a size recertification required by § 125.12 of this chapter must be received by the contracting officer prior to the close of business on the 5th business day after bid opening or notice (including notice received in writing, orally, or via electronic posting) of the identity of the prospective awardee of an order issued under a multiple award contract or agreement.
* * * * *
PART 124—8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS DETERMINATIONS
4. The authority citation for part 124 continues to read as follows:
What definitions are important in the HUBZone program?
* * * * *
Certification
or
certify
means the process by which SBA determines that a concern is qualified for the HUBZone program and eligible to be designated by SBA as a certified HUBZone small
( printed page 9675)
business concern in DSBS (or successor system).
* * * * *
8. Amend § 126.200 by redesignating example 1 to paragraph (c)(2)(i) as example 1 to paragraph (c)(1)(ii) and revising it to read as follows:
What requirements must a concern meet to be eligible as a certified HUBZone small business concern?
* * * * *
(c) * * *
(1) * * *
(ii) * * *
Example 1 to paragraph (c)(1)(ii).
If a firm was certified on March 31, 2021, and purchased a building on July 20, 2021, the 10-year clock would begin on the date of the investment (July 20, 2021).
* * * * *
Larry Stubblefield,
Deputy Associate Administrator, Government Contracting and Business Development.
Use this for formal legal and research references to the published document.
90 FR 9673
Web Citation
Suggested Web Citation
Use this when citing the archival web version of the document.
“HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs; Correction,” thefederalregister.org (February 18, 2025), https://thefederalregister.org/documents/2025-02741/hubzone-program-updates-and-clarifications-and-clarifications-to-other-small-business-programs-correction.