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The U.S. Small Business Administration (“SBA”) has issued an interim rule that, according to the Federal Register, “amends SBA’s HUBZone, 8(a) Business Development, Government Contracting and Size Standard regulations to implement provisions of the Small Business Act including the Consolidated Appropriations Act, 2005, specifically, Subtitle E of Division K entitled the Small Business Reauthorization and Manufacturing Assistance Act of 2004.” 

Among the more important changes are those made to the definitions of key words throughout the Federal Acquisition Regulation (“FAR”).  First is the definition of “employee.”  The interim rule states that “[t]o clarify the definition of ‘employee’ as it relates to the HUBZone program, SBA is adding more explicit language to [13 C.F.R.] Sec. 125.6(e)(6) to indicate that for purposes of the HUBZone program, the definition of ‘employee’ in Sec. 126.103 controls.”  The term “redesignated area” has now been “defined as the later of the date on which the Census Bureau publicly releases the first results from the 2010 decennial census or three years after the date on which the area ceased to qualify as a HUBZone.” 

The interim rule amends a variety of other definitions as well: “business concern,” “affiliation,” “HUBZone small business concern,” and “qualified HUBZone small business concern,” among others, have been altered to comply with the above-mentioned legislation.  Also affected are “the HUBZone eligibility requirements for tribally-owned HUBZone concerns,” “military base closure areas,” “qualified non-metropolitan” counties, and other entities.

The interim rule, effective August 30, 2005, is open to comments until October 31, 2005.  Submit comments by labeling them RIN 3245-AF31.  In addition to other methods, comments may be submitted by sending them to http://www.regulations.gov.  

This update is published by Venable LLP. Venable publications are not intended to provide legal advice or opinion. Such advice may only be given when related to specific fact situations. © Copyright by Venable LLP 2005.