Rule2025-02741
HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs; Correction
Primary source
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Published
February 18, 2025
Effective
February 18, 2025
Issuing agencies
Small Business Administration
Abstract
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 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.
Full Text
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<title>Federal Register, Volume 90 Issue 31 (Tuesday, February 18, 2025)</title>
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[Federal Register Volume 90, Number 31 (Tuesday, February 18, 2025)]
[Rules and Regulations]
[Pages 9673-9675]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-02741]
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SMALL BUSINESS ADMINISTRATION
13 CFR Parts 121, 124, 126
RIN 3245-AH68
HUBZone Program Updates and Clarifications, and Clarifications to
Other Small Business Programs; Correction
AGENCY: U.S. Small Business Administration.
ACTION: Correcting amendment.
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SUMMARY: The U.S. Small Business Administration (SBA) is correcting a
final rule that was published in the Federal Register on December 17,
2024.
[[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, <a href="/cdn-cgi/l/email-protection#fc9d90958f9392d29d919d9292bc8f9e9dd29b938a"><span class="__cf_email__" data-cfemail="284944415b4746064945494646685b4a49064f475e">[email protected]</span></a>.
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 Sec. 121.1001 by adding paragraphs (a)(11)
and (12), authorizing size protests in response to contract-specific
size recertifications required by Sec. 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. See 89 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 Sec. 125.12 specifically apply to ``Set Aside or
Reserved Awards'' as defined in Sec. 125.1. In addition, this
correction amends Sec. 121.1004 to add the corresponding timeliness
requirements for protests filed under new Sec. 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 Sec. 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 Sec. 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 Sec. 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.
List of Subjects
13 CFR Part 121
Administrative practice and procedure, Government procurement,
Government property, Grant programs--business, Individuals with
disabilities, Loan programs--business, Small businesses.
13 CFR Part 124
Administrative practice and procedure, Government procurement,
Government property, Small businesses.
13 CFR Part 126
Administrative practice and procedure, Government procurement,
Penalties, Reporting and recordkeeping requirements, Small businesses.
Accordingly, 13 CFR parts 121, 124, and 126 are corrected by making
the following correcting amendments:
PART 121--SMALL BUSINESS SIZE REGULATIONS
0
1. The authority citation for part 121 continues to read as follows:
Authority: 15 U.S.C. 632, 634(b)(6), 636(a)(36), 662, and
694a(9).
0
2. Amend Sec. 121.1001 by revising paragraph (a)(11) and removing
paragraph (a)(12).
The revision reads as follows:
Sec. 121.1001 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 Sec. 125.1 of this chapter),
that is required by Sec. 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.
* * * * *
0
3. Amend Sec. 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:
Sec. 121.1004 What time limits apply to size protests?
(a) * * *
(4) Protests relating to size recertifications. Protests from
another contract or agreement holder relating to a size recertification
required by Sec. 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
0
4. The authority citation for part 124 continues to read as follows:
Authority: 15 U.S.C. 634(b)(6), 636(j), 637(a), 637(d), 644, 42
U.S.C. 9815; and Pub. L. 99-661, 100 Stat. 3816; Sec. 1207, Pub. L.
100-656, 102 Stat. 3853; Pub. L. 101-37, 103 Stat. 70; Pub. L. 101-
574, 104 Stat. 2814; Sec. 8021, Pub. L. 108-87, 117 Stat. 1054; and
Sec. 330, Pub. L. 116-260.
Sec. 124.602 [Amended]
0
5. Amend Sec. 124.602 in paragraph (a) introductory text by removing
``$10,000,000'' and adding in its place ``$20,000,000''.
PART 126--HUBZONE PROGRAM
0
6. The authority citation for part 126 continues to read as follows:
Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a.
0
7. Amend Sec. 126.103 by removing the definition of ``Certify'' and
adding in its place a definition for ``Certification or certify'' to
read as follows:
Sec. 126.103 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
[[Page 9675]]
business concern in DSBS (or successor system).
* * * * *
0
8. Amend Sec. 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:
Sec. 126.200 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.
[FR Doc. 2025-02741 Filed 2-14-25; 8:45 am]
BILLING CODE 8026-09-P
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