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SBA Final Rule Updates Federal Contracting Program Regulations for Women-Owned Small Businesses

The Small Business Administration (SBA) has issued a final rule introducing updates to the Women-Owned Small Business (WOSB) Federal Contracting Program regulations. Released on Wednesday, December 4, 2024, the rule is intended to align the program with current statutes, improve procedural processes, and improve consistency among SBA government contracting programs.

The updates, reflecting feedback from industry stakeholders, incorporate new definitions, procedural changes, and legal requirements of the National Defense Authorization Act (NDAA) for fiscal year 2022. The rule is designed to streamline processes certification and improve the clarity and functionality of the WOSB Program.

Key changes in the final rule

The final rule introduces several modifications, including:

  • Alignment with current statutes: The updates reflect statutory amendments that had not yet been integrated into regulations, ensuring compliance with existing laws.
  • New definitions: Definitions of terms used in the WOSB regulations have been added to provide clarity and standardization.
  • Simplified certification process: The rule revises the process by which the SBA reviews certification applications, implementing statutory changes from the FY22 NDAA regarding the impact of status determinations on small businesses.
  • Consistency between programs: Language and requirements have been standardized to align with other SBA government contracting programs, including restrictions on outside employment and monitoring requirements for qualifying individuals.
  • Representation during certification: The rule specifies who is authorized to represent a company during the certification process, ensuring accountability and accuracy in submissions.

Comments during the comment period

During the 60-day comment period, SBA received comments from two interested parties. One commenter expressed full support for the proposed changes, while the other praised the rule’s efforts to address industry concerns and standardize program requirements, describing the updates as “generally well-conceived.”

Implications for women-owned small businesses

The updates are expected to streamline the certification process and ensure WOSBs can more easily navigate government contracting opportunities. By incorporating industry feedback and legal requirements, the SBA seeks to strengthen its support for women entrepreneurs and improve program effectiveness.

For more information about these regulatory updates and how they may impact women-owned small businesses, access the full final rule in the Federal Register or visit the SBA website.

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