Small Business' Need for Defending Size Protests

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Small businesses need to defend and appeal protests against the size of the company when acquiring certain government and other agency contracts. The protests that could harm these business arrangements occur due to the larger size of some companies that may retain the label of small business as opposed to those that are even smaller in comparison.

It is often important to hire a lawyer to fight against the protests of size when an SBA company has a contract with government agency. These protests may harm the business prospects, and these situations may end in disaster for the owner of the small business. With membership in the SBA, the companies facing protests may need to ensure all rules and regulations adhered to have no complications or missing requirements satisfied. The opposing legal party may need to weight he benefits and consequences of a failed protest versus possible success in the matter. Negotiations with lawyers often occurs before or during the court proceedings.

The Need for Lawyer’s Services

When a small business is facing a protest due to the size of the company, this follows the owner until he or she attempt to throw off the protest. This usually requires the services of a legal representative. An appeal may become necessary if the first judgement determines that the business is not small enough to remain in the SBA. This affects what contracts are possible and which awards may transfer to the company based on participation in the SBA and being a qualified member. Then, the owner needs to hire a lawyer to defend against the allegations.

While it is difficult to file the protest by the other party, facing the issue necessitates careful review of the information. A document is part of the determination, and the SBA may provide it to the company owner. The technical rules apply to these situations, and the Administration will carefully consider all details provided by the other party. The size protest is often part of the process when the company in question has a guest or other official within the company building. There are certain details that he or she is present for and are then added to documentation in the protest.

The Protest Explained

When a small business faces a protest based on size, this could occur due to the company employing over a certain number of workers. A small business must remain small for membership validity in the SBA. The officers and other authorities in the SBA will look over the documentation and interview the company owner. Any details that are either overlooked or not supplied to the SBA may incur a violation of membership terms and conditions. This may then lead to the protest of size. This may disqualify the company from participation in the SBA, void contracts with companies or government agencies or remove any awards supplied to the business.

Defending against the Size Protest

Before the protest needs a defense, the owner must review the materials. A response to the matter is necessary in only a few days after the protest issues to the company. Then, hiring a lawyer is usually the next step. He or she may provide the means to create a comprehensive strategy of defense against the protest. Legal representation may respond to the protest in a timely manner and ensure no violations occur in the process. The defense becomes critical to retain small business loans, programs through the 8(a), and contract awards for work. While a lawyer is not a requirement, he or she may prevent disaster in these situations.

Compliance to Rules

Size status in the SBA is imperative. The company attached to the Administration must not exceed a certain size. These regulations often depend on the state or type of company. The specific details exist within the local SBA offices. However, if any of these rules is in violation, the owner of the business needs to rectify the matter immediately. This may prevent a size protest and ensure the company retains contracted work, awarded participation employment and other benefits in the SBA.

The Lawyer in a Size Protest

A size protest does not need a lawyer per the SBA guidelines. However, the company often requires the services of a legal representative for understanding the protest, filing paperwork and progressing through defending against the matter. To increase chances of success in the outcome of a size protest, the owner of the business should ensure a lawyer is part of each stage.


Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.

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