[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR124.303]



[Page 382-383]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 124_8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS 

DETERMINATIONS--Table of Contents

 

                   Subpart A_8(a) Business Development

 

Sec. 124.303  What is termination?



    (a) SBA may terminate the participation of a concern in the 8(a) BD 

program prior to the expiration of the concern's Program Term for good 

cause. Examples of good cause include, but are not limited to, the 

following:

    (1) Submission of false information in the concern's 8(a) BD 

application, regardless of whether correct information would have caused 

the concern to be denied admission to the program, and regardless of 

whether correct information was given to SBA in accompanying documents 

or by other means.

    (2) Failure by the concern to maintain its eligibility for program 

participation.

    (3) Failure by the concern for any reason, including the death of an 

individual upon whom eligibility was based, to maintain ownership, full-

time day-to-day management, and control by disadvantaged individuals.

    (4) Failure by the concern to obtain prior written approval from SBA 

for any changes in ownership or business structure, management or 

control pursuant to Sec. Sec. 124.105 and 124.106.

    (5) Failure by the concern to disclose to SBA the extent to which 

non-disadvantaged persons or firms participate in the management of the 

Participant business concern.

    (6) Failure by the concern or one or more of the concern's 

principals to maintain good character.

    (7) A pattern of failure to make required submissions or responses 

to SBA in a timely manner, including a failure to provide required 

financial statements, requested tax returns, reports, updated business 

plans, information requested by SBA's Office of Inspector General, or 

other requested information or data within 30 days of the date of 

request.

    (8) Cessation of business operations by the concern.

    (9) Failure by the concern to pursue competitive and commercial 

business in accordance with its business plan, or failure in other ways 

to make reasonable efforts to develop and achieve competitive viability.

    (10) A pattern of inadequate performance by the concern of awarded 

section 8(a) contracts.

    (11) Failure by the concern to pay or repay significant financial 

obligations owed to the Federal Government.

    (12) Failure by the concern to obtain and keep current any and all 

required permits, licenses, and charters, including suspension or 

revocation of any



[[Page 383]]



professional license required to operate the business.

    (13) Excessive withdrawals, including transfers of funds or other 

business assets, from the concern for the personal benefit of any of its 

owners or any person or entity affiliated with the owners that hinder 

the development of the concern (see Sec. 124.112(d).

    (14) Unauthorized use of SBA direct or guaranteed loan proceeds or 

violation of an SBA loan agreement.

    (15) Submission by or on behalf of a Participant of false 

information to SBA, including false certification of compliance with 

non-8(a) business activity targets under Sec. 124.507 or failure to 

report changes that adversely affect the program eligibility of an 

applicant or program participant under Sec. 124.204 and Sec. 124.112, 

where responsible officials of the 8(a) BD Participant knew or should 

have known the submission to be false.

    (16) Debarment, suspension, voluntary exclusion, or ineligibility of 

the concern or its principals pursuant to part 145 of this title or FAR 

subpart 9.4 (48 CFR part 9, subpart 9.4).

    (17) Conduct by the concern, or any of its principals, indicating a 

lack of business integrity. Such conduct may be demonstrated by 

information related to a criminal indictment or guilty plea, a criminal 

conviction, or a judgment or settlement in a civil case.

    (18) Willful failure by the Participant business concern to comply 

with applicable labor standards and obligations.

    (19) Material breach of any terms and conditions of the 8(a) BD 

Program Participation Agreement.

    (20) Willful violation by a concern, or any of its principals, of 

any SBA regulation pertaining to material issues.

    (b) The examples of good cause listed in paragraph (a) of this 

section are intended to be illustrative only. Other grounds for 

terminating a Participant from the 8(a) BD program for cause may exist 

and may be used by SBA.