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Expert Analysis

Mitigating Risk After SBA's New Presumed Loss Rule

Law360, New York (August 29, 2013, 12:10 PM EDT) -- The U.S. Small Business Administration recently issued its highly anticipated final rule establishing the method for calculating damages to the government when a contractor willfully misrepresents its size or status.[1] Effective Aug. 27, 2013, the new SBA rule implements the statutory requirements of the Small Business Jobs Act of 2010 and subjects small business contractors who willfully seek and receive contract awards by misrepresentation to damages based on the total amount of the improperly obtained contract. As a result of this new reality, contractors need to take extra precautions when making size or status representations....

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