Revisions in the Small Business Administration's minority small business and capital ownership development program affecting small business owned by Indian tribes have been announced by Stan Nakano, SBA director for Utah.
Nakano said the revisions in what is commonly called the 8 program are intended to encourage program participation by businesses owned by Indian tribes and complement provisions of the Business Opportunity Development Reform Act of 1988.The first amendment establishes a waiver provision to the requirement that a firm must have business revenues for two years before it is eligible for participation. However, a tribally owned firm still must show a strategy to ensure a mix of competitive and non-competitive contracts.
The second amendment permits a tribally-owned firm to participate in the 8 program if its chief executive officer is a member of any economically disadvantaged tribe.
Under the third change, in case of a tribally owned 8 firm in a joint venture with a non-8 firm, the non-8 firm will be allowed to identify contract opportunities for the joint venture. Prior to the change, only SBA or an 8 firm could identify such contracts.
The final rule clarifies that an 8 joint venture agreement is not subject to the restrictions imposed on ownership by a non-disadvantaged individual or group in an 8 concern.