When determining whether a deviation from a negotiated indirect cost rate is justified, SBA will consider the following factors:
The degree to which a non-Federal entity has been able to defray its overhead expenses via those indirect costs it has recovered under other, concurrent SBA awards;
The amount of funding that must be devoted to conducting program activities in order for a project to result in meaningful outcomes; and
The amount of project funds that will remain available for conducting program activities after a negotiated rate is applied.
After conducting the analysis required in paragraph (a) above, the head of each SBA grant program office will determine in writing whether there is sufficient justification to deviate from a negotiated indirect cost rate.
Where SBA determines that deviation from a negotiated rate is justified, it will provide a copy of that determination to OMB and will inform potential applicants of the deviation in the corresponding funding announcement.
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