(a) A SLBE firm’s SLBE eligibility may be permanently revoked by the SLMBE Office if the firm fails to perform a commercially useful function under a contract, or if the firm allows its SLBE status to be fraudulently used for the benefit of a non-SLBE firm (i.e., a firm that lacks the size or geographic requirements for SLBE eligibility) or the owners of a non-SLBE firm so as to provide the non-SLBE firm or firm owners benefits from APIs for which the non-SLBE firm and its owners would not otherwise be entitled.

(b) The SLMBE Office will provide written notice to the SLBE upon termination from the SLBE program, and state therein the reasons for such termination. (REG-PROC-SD-2017-005 § VI(C))