Senior Managing Member Dispute Leads to SDVOSB Denial for BlackHays

BlackHays Group LLC v. U.S. Small Business Administration concerned the company’s application for recertification as a Service-Disabled Veteran-Owned Small Business. The SBA denied recertification after reviewing an operating agreement that named both the service-disabled veteran owner and another veteran as Managing Members with equal authority.

The Office of Hearings and Appeals upheld the denial because the agreement did not clearly establish that the service-disabled veteran exercised the required control over significant business decisions. The case emphasizes the importance of clear governance provisions, sole qualifying veteran control, and careful operating-agreement drafting for SDVOSB certification.

Original article:https://www.whitcomblawpc.com/business-law-blog/senior-managing-member-dispute-leads-to-sdvosb-denial-for-blackhays