SBA has issued a final rule to revamp the social disadvantage rule for the 8(a) Program. We wrote about SBA’s proposed rule from June 11, 2026 that would “remove the rebuttable presumption that individuals belonging to certain designated groups are socially disadvantaged and set forth revised standards for individuals establishing social disadvantage.” The SBA has now issued a final rule that would do just that. The rule continues the trend of the Ultima decision in 2023, which ruled that the rebuttable presumption of social disadvantage under the 8(a) is unconstitutional as it violates the right to equal protection. Based on that decision, SBA stopped relying on the presumption of social disadvantage. Now, SBA has formally issued a rule to eliminate any mention of the presumption from the regulations. SBA’s rule replaces the individual social disadvantage narrative with a test that looks to whether a person experienced discrimination on the basis of race through programs like affirmative action. Here are some details.
Continue readingTag Archives: 8(a) regulations
Breaking: SBA Proposes to Remove Social Disadvantage Presumption for 8(a) Program
SBA is proposing to amend its 8(a) Program rules to “remove the rebuttable presumption that individuals belonging to certain designated groups are socially disadvantaged and set forth revised standards for individuals establishing social disadvantage.” This proposed rule continues the trend that has been building since the Ultima decision in 2023. In 2023, a federal court said that the rebuttable presumption of social disadvantage under the 8(a) is unconstitutional as it violates the right to equal protection. Based on that decision, SBA stopped relying on the presumption of social disadvantage. Three years later, SBA is proposing to formally eliminate any mention of the presumption from the regulations. SBA would replace the individual social disadvantage narrative with a test that looks to whether a person experienced discrimination on the basis of race through programs like affirmative action.
Here are some key points from the proposed rule.
Continue readingSBA Puts “Temporary Pause” on New 8(a) Program Application Submissions
The SBA’s Office of Government Contracting and Business Development, the office that handles the 8(a) Business Development Program applications, has just confirmed that SBA has “temporarily paused” the submission of new 8(a) Program applications in light of the recent decision by the federal district court of the Eastern District of Tennessee.
Continue readingInitial Challenge to 8(a) Presumption of Social Disadvantage for Certain Minority Groups Succeeds: What This Means for Now
On July 19, 2023, the federal district court of the Eastern District of Tennessee issued a decision regarding a case involving the rebuttable presumption of social disadvantage in place under the 8(a) Business Development Program. Ultima Servs. Corp. v. U.S. Dep’t of Agric., 220CV00041DCLCCRW, 2023 WL 4633481, at *1 (E.D. Tenn. July 19, 2023). This decision found that this presumption is unconstitutional as it violates the right to equal protection. This, understandably, has caused a great deal of confusion and concern for current and potential 8(a) Program participants. In this post, we will not be providing our opinion on the correctness of the court’s decision (or analyze it from a policy perspective), as we will leave that to attorneys who specialize in constitutional law. Instead, we will go over the decision, what it means, and what it could affect down the road.
Continue readingBack to Basics: SBA’s 8(a) Business Development Program
If you’re a small business owner interested in government contracts, you’ve probably heard about the SBA’s 8(a) Business Development Program. The 8(a) Program itself is complex, and its eligibility rules are some of stricter rules out there; but its potential benefits are tremendous. In this Back to Basics post, I’ll break down some of the very basics about the 8(a) Program. But don’t worry, not only will I follow this post up with another to unpack more of the complexities, I have also included links throughout this post to other posts doing the same.
Continue readingSBA’s Approach to Monitoring 8(a) Firms is Focused on Eligibility Rather than Business Development, Says SBA’s OIG
Last week, the SBA’s Office of Inspector General (OIG) issued a report, entitled “SBA’s Business Development Assistance to 8(a) Program Participants.” The report detailed the OIG’s recent audit of the SBA’s 8(a) Business Development Program to “determine to what extent SBA measures and monitors an 8(a) firm’s progress toward achieving individual business development goals” and “to ensure 8(a) firms receive the help needed to meet their goals and if the program adapted during the Coronavirus Disease 2019 pandemic.” Let’s take a closer look at the details and findings.
Continue readingSBA Suspends Bona Fide Place of Business Requirement for 8(a) Construction Contracts
SBA’s requirement that 8(a) participants maintain a bona fide place of business in the geographic location of any 8(a) construction contracts has been an encumbrance for many federal contractors–even prior to the global pandemic. But fortunately, SBA has recently recognized the additional challenges that COVID-19 has caused for 8(a) contractors seeking to comply with this rule. And as such, SBA has suspended this requirement in an effort to help our nation’s small disadvantaged businesses during these arduous times.
Continue reading