SBA denied a company’s application for verification as an SDVOSB. The company’s CEO was not a veteran. Thus, SBA determined the company was not controlled by a service-disabled veteran. The company appealed, arguing it was veteran-controlled because its President was a service-disabled veteran. OHA found the company’s documents contained conflicting information about who controlled the firm. The company had not met its burden of showing control by veteran.
VSBC Appeal of Wigs Plus L.L.C., SBA No. VSBC-278-A
Background
Wigs Plus, L.L.C. applied for certification as a service-disabled, veteran-owned small business. The SBA denied the application. Wigs' corporate documents indicated the company was 60% owned by a service-disabled veteran. But the documents also indicated the veteran’s wife, who was not a veteran, was CEO. SBA determined the company was not controlled by a service-disabled veteran. Wigs appealed to SBA’s Office of Hearings and Appeals.
Analysis
Wigs argued while the wife had been a CEO, minutes from the most recent organizational meeting showed the husband had been elected President. Thus, Wigs argued, the company was now controlled by a service-disabled veteran.
OHA found Wigs had not shown the company was controlled by a veteran. Wigs’ corporate documents contained conflicting information. They showed the wife was CEO. While the husband had recently been elected President, that did not demonstrate the CEO position had been abolished or that the President controlled the company. An appellant is responsible for proving its eligibility as an SDVOSB. Wigs confusing documents had not satisfied this burden.
Wigs is represented by its President, Bennie R. Williams
--Case summary by Craig LaChance, Senior Editor