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Access to SBA Contracts

By John J. Jacko III
July 31, 2006

Under current U.S. Small Business Administration ('SBA') regulations, franchisees and licensees are not, by virtue of their contractual franchise and license agreements alone, ineligible to bid on small business set-aside procurement contracts or to apply for SBA loans. Although franchise or license relationships do not make franchisees or licensees automatically ineligible, they are cause for affiliation scrutiny by the SBA or protesting bidders if a franchisee or licensee is the successful bidder on a procurement or is an applicant for an SBA loan.

A franchisee or licensee's ability to secure and maintain 'small business' eligibility affords it greater financing and government contract opportunities. In 2005, the federal government's small business set-aside contract opportunities totaled $79.6 billion according to the most recent data provided by the SBA.

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