If SBA believes that a concern does not meet the program eligibility requirements, the concern fails to recertify in accordance with the requirements in §127.400, or the concern has failed to notify SBA of a material change, SBA will propose the concern for decertification from the program.

(a) Proposed decertification. The D/GC or designee will notify the concern in writing that it has been proposed for decertification. This notice will state the reasons why SBA has proposed decertification, and that the WOSB or EDWOSB must respond to each of the reasons set forth.

(1) The WOSB or EDWOSB must respond in writing to a proposed decertification within 20 calendar days from the date of the proposed decertification.

(2) If the initial certification was done by a third-party certifier, SBA will also notify the third-party certifier of the proposed decertification in writing.

(b) Decertification. The D/GC or designee will consider the reasons for proposed decertification and the concern's response before making a written decision whether to decertify. The D/GC may draw an adverse inference where a concern fails to cooperate with SBA or provide the information requested. The D/GC's decision is the final agency decision.

(c) Reapplication. A concern decertified pursuant to this section may reapply to the program pursuant to §127.305.

[85 FR 27664, May 11, 2020]