Ownership and Control Criteria Changes Coming for SDVOSB Programs

January 3, 2017

SDVOSB Programs: 2017 NDAA Modifies Ownership & Control Criteria

Source: SmallGovCon, Steven Koprince, December 12, 2016

The 2017 National Defense Authorization Act makes some important adjustments to the criteria for ownership and control of a service-disabled veteran-owned small business.

The 2017 NDAA modifies how the ownership criteria are applied in the case of an ESOP, specifies that a veteran with a permanent and severe disability need not personally manage the company on a day-to-day basis, and, under limited circumstances, permits a surviving spouse to continue to operate the company as an SDVOSB.

As I discussed in a separate blog post last week, the SBA and VA currently operate separate SDVOSB programs, and each agency has its own definition of who qualifies as an SDVOSB.  The 2017 NDAA consolidates these definitions by requiring the VA to use the SBA’s criteria for ownership and control.

In addition to consolidating the statutory definitions, the 2017 NDAA makes three important changes to the ownership and control criteria themselves. READ MORE….

The National Defense Authorization Act has been passed by the House and Senate.  Contact your nearest PTAC to learn about this Act and how it might affect your business.


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