[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: 13CFR124.304]



[Page 383-384]

 

                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. 124.304  What are the procedures for early graduation and 

termination?



    (a) General. The same procedures apply to both early graduation and 

termination of Participants from the 8(a) BD program.

    (b) Letter of Intent to Terminate or Graduate Early. When SBA 

believes that a Participant should be terminated or graduated prior to 

the expiration of its program term, SBA will notify the concern in 

writing. The Letter of Intent to Terminate or Graduate Early will set 

forth the specific facts and reasons for SBA's findings, and will notify 

the concern that it has 30 days from the date it receives the letter to 

submit a written response to SBA explaining why the proposed ground(s) 

should not justify termination or early graduation.

    (c) Recommendation and decision. Following the 30-day response 

period, the Assistant Administrator for DPCE (AA/DPCE) or designee will 

consider the proposed early graduation or termination and any 

information submitted in response by the concern. Upon determining that 

early graduation or termination is not warranted, the AA/DPCE or 

designee will notify the Participant in writing. If early graduation or 

termination appears warranted, the AA/DPCE will make such a 

recommendation to the AA/8(a)BD, who will then make a decision whether 

to early graduate or terminate the concern. SBA will act in a timely 

manner in processing early graduation and termination actions.

    (d) Notice requirements. Upon deciding that early graduation or 

termination is warranted, the AA/8(a)BD will issue a Notice of Early 

Graduation or Termination. The Notice will set forth the specific facts 

and reasons for the decision, and will advise the concern that it may 

appeal the decision in accordance with the provisions of part 134 of 

this title.

    (e) Appeal to OHA. Procedures governing appeals of early graduation 

or termination to SBA's OHA are set forth in part 134. If a Participant 

does not appeal a Notification of Early Graduation or Termination within 

45 days after the Participant receives the Notification, the decision of 

the AA/8(a)BD is the final agency decision effective on the date the 

appeal right expired.

    (f) Effect of early graduation or termination. After the effective 

date of early graduation or termination, a Participant is no longer 

eligible to receive any



[[Page 384]]



8(a) BD program assistance. However, such concern is obligated to 

complete previously awarded 8(a) contracts, including any priced options 

which may be exercised.



[63 FR 35739, June 30, 1998, as amended at 67 FR 47246, July 18, 2002]