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SBA proposes new rules relaxing affiliation rules for small businesses

On December 29, 2014, Small Business Administration proposed rules in the Federal Register to, among other things, relax the affiliation rules for similarly situated entities. Similarly situated entities are those companies that share the same size status or other socioeconomic program status. For example, two small businesses are similarly situated to each other and two 8(a) Business Development Program participants are similarly situated to each other. Specifically, the SBA proposed to amend the ostensible subcontractor rule located in 13 CFR § 121.103(h)(4) and broaden the exception to joint-venture affiliation located in 13 CFR § 121.103(h)(3).

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