The old rules governing SDVOSBs included a rebuttable presumption that a service-disabled veteran SDVOSB does not control the firm based on location. It said:
(l) Close proximity. There is rebuttable presumption that a veteran or, in the case of an SDVO SBC, service-disabled veteran does not control the firm if that individual is not located within a reasonable commute to firm’s headquarters and/or job-sites locations, regardless of the firm’s industry. The veteran or, in the case of an SDVO SBC, service-disabled veteran’s ability to answer emails, communicate by telephone, or to communicate at a distance by other technological means, while delegating the responsibility of managing the concern to others is not by itself a reasonable rebuttal.
13 C.F.R. § 125.13(l)(rule no longer in effect).
The VA used to interpret this rule to mean that the SDV had to live within 150 miles of the headquarters or job site. Crosstown Courier Service Inc., SBA No. CVE-239 (July 26, 2022). But it could be enforced pretty strictly. For instance, when an SDV lived over 1200 miles from a job site, SBA upheld a ruling that the SDVOSB was in eligible as the headquarters was “located more than 1,200 miles from the job locations in North Dakota and Minnesota.” FHITO Logistics, LLC, SBA No. CVE-202 (Sept. 2, 2021) …
Luckily, SBA has now agreed that the rule is no longer needed and has eliminated the rule entirely. Therefore, SDVOSBs can apparently worry a lot less about the location of their residence as compared to their principal office and job sites. Thanks to the SBA for making this common sense update… Read the full article here.