The VA and SBA are addressing several areas in which the ownership and control rules for SDVOSBs would be less restrictive, according to Leney.㰀甀氀㸀
Minority-share owners would have a say in “extraordinary business decisions,” such as decisions to shut down the business, add capital or change the business structure. The change is aimed at making it easier for the veterans to attract minority investors.㰀氀椀㸀 ᰀ匠瀀氀椀琀 瘀漀琀椀渀最ᴀ†眀漀甀氀搀 戀攀 愀氀氀漀眀攀搀 漀渀 琀栀攀 戀漀愀爀搀 漀昀 琀栀攀 匀䐀嘀伀匀䈀⸀ 吀栀愀琀 最攀渀攀爀愀氀氀礀 洀攀愀渀猀 琀栀愀琀 愀猀 氀漀渀最 愀猀 琀栀攀 洀愀樀漀爀椀琀礀 漀昀 琀栀攀 瘀漀琀攀猀 漀渀 琀栀攀 戀漀愀爀搀 愀爀攀 瘀攀琀攀爀愀渀 漀眀渀攀爀 瘀漀琀攀猀Ⰰ 琀栀攀 渀漀渀ⴀ瘀攀琀攀爀愀渀猀 挀愀渀 戀攀 愀 瀀愀爀琀 漀昀 琀栀攀 瘀漀琀椀渀最 瀀爀漀挀攀猀猀Ⰰ 愀渀搀 琀栀攀 挀漀洀瀀愀渀礀 猀琀椀氀氀 眀漀甀氀搀 洀攀攀琀 琀栀攀 爀攀焀甀椀爀攀洀攀渀琀 昀漀爀 攀氀椀最椀戀椀氀椀琀礀Ⰰ 䰀攀渀攀礀 猀愀椀搀⸀
The right of first refusal would be allowed for the minority owners. If the veteran owner wishes to sell the company to an outside investor at a set price, the minority investors would have the right to buy it at the same price.㰀氀椀㸀 吀爀愀渀猀昀攀爀 爀攀猀琀爀椀挀琀椀漀渀猀㨀 䴀椀渀漀爀椀琀礀 漀眀渀攀爀猀 眀漀甀氀搀 戀攀 愀戀氀攀 琀漀 椀渀昀氀甀攀渀挀攀 愀 琀爀愀渀猀昀攀爀 漀昀 漀眀渀攀爀猀栀椀瀀⸀
The meaning of “control” would be modified. “The veteran has to be able to manage daily business operations, rather than also having to administer daily business operations. This enhances the ability to delegate,” Leney said in the webinar.㰀氀椀㸀 䰀椀挀攀渀猀椀渀最㨀 䌀甀爀爀攀渀琀氀礀Ⰰ 椀昀 猀漀洀攀漀渀攀 漀琀栀攀爀 琀栀愀渀 琀栀攀 瘀攀琀攀爀愀渀 栀愀猀 愀 氀椀挀攀渀猀攀 渀攀攀搀攀搀 昀漀爀 琀栀攀 匀䐀嘀伀匀䈀Ⰰ 椀琀 椀猀 甀猀甀愀氀氀礀 椀渀攀氀椀最椀戀氀攀⸀ 唀渀搀攀爀 琀栀攀 瀀爀漀瀀漀猀攀搀 樀漀椀渀琀 爀甀氀攀Ⰰ 愀猀 氀漀渀最 愀猀 琀栀攀 瘀攀琀攀爀愀渀 漀眀渀攀爀 栀愀猀 挀漀渀琀爀漀氀 漀瘀攀爀 琀栀攀 昀椀爀椀渀最 漀昀 琀栀攀 氀椀挀攀渀猀攀 栀漀氀搀攀爀Ⰰ 琀栀攀 匀䐀嘀伀匀䈀 眀漀甀氀搀 戀攀 攀氀椀最椀戀氀攀⸀
The veteran owner would be allowed to accept full-time outside employment as long as the SDVOSB has no revenues and the job is not with the minority business partners.㰀氀椀㸀 䔀洀瀀氀漀礀洀攀渀琀 匀琀漀挀欀 伀瀀琀椀漀渀 倀氀愀渀猀 眀漀甀氀搀 戀攀 攀砀挀氀甀搀攀搀 昀爀漀洀 挀漀渀猀椀搀攀爀愀琀椀漀渀 漀昀 漀眀渀攀爀猀栀椀瀀⸀
Rules would be looser for non-veterans involved in management of the SDVOSB, as long as the veteran has ultimate control.㰀氀椀㸀 匀䈀䄀 伀昀昀椀挀攀 漀昀 䠀攀愀爀椀渀最猀 ☀ 䄀瀀瀀攀愀氀猀 眀漀甀氀搀 戀攀 椀渀 挀栀愀爀最攀 漀昀 挀攀爀琀椀昀椀挀愀琀椀漀渀 愀瀀瀀攀愀氀猀 昀漀爀 匀䐀嘀伀匀䈀猀 ⠀匀攀攀 伀挀琀⸀ 㘀 攀搀椀琀椀漀渀 漀昀 匀攀琀ⴀ䄀猀椀搀攀 䄀氀攀爀琀⤀⸀
㰀瀀㸀
㰀戀㸀䴀漀爀攀 椀渀昀漀爀洀愀琀椀漀渀㨀㰀⼀戀㸀
VA rule: https://www.va.gov/OSDBU/verification/VA-SBA-Joint-Rule.asp
㰀瀀㸀☀渀戀猀瀀㬀☀渀戀猀瀀㬀☀渀戀猀瀀㬀☀渀戀猀瀀㬀☀渀戀猀瀀㬀