Why File: An Appeal of SBA’s 8(a) Program Denial

The U.S. Small Business Administration’s (SBA) 8(a) Business Development Program (the 8(a) Program) is a popular set-aside program that provides a lot of opportunities for small businesses. In hopes of becoming one of those successful businesses, it is common for a company to invest a lot of time, money, and resources into their 8(a) Program application. When SBA denies their 8(a) application, a company may feel like it was all a waste and accept the loss. Focusing only on the denial alone, the company fails to review SBA’s reason for denial. And what if SBA’s reason was wrong? Well, this post explores the option to challenge a denial of an 8(a) application.

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SBA OHA Says: Claiming Social Disadvantage? Prove it!

Many individuals who have gone through SBA’s 8(a) Business Development Program (the 8(a) Program) will tell you that the application process is not for the faint of heart. One of the most time-consuming, and often frustrating hurdles of the application is the Social Disadvantage Narrative (or SDN).  

Applicants are asked to revisit painful moments where they experienced discrimination. Sharing these deeply personal experiences is what makes it so upsetting for an applicant when SBA pushes back on their narrative – or worse, when SBA questions the bias, finding “legitimate alternative grounds” for the mistreatment.

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Preview Shows Changes to 8(a) Application in New SBA Portal

As many in federal contracting know, the SBA had its certification portal (certify.sba.gov) closed for upgrades for a few months. The SBA is replacing it with a new portal called MySBA Certifications which as of the writing of this blog post is now live. While it hasn’t been widely published, SBA released screenshots of this new portal, which indicate SBA is making some large changes to applications, especially for applications to the 8(a) Program. We here at SmallGovCon think it is important for Federal Contractors to be aware of these changes before utilizing this new portal.

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SBA’s 2023 Update: Demonstrating 8(a) Social Disadvantage

SBA recently issued new guidance on how to demonstrate social disadvantage–one of the elements an individual must meet to be eligible for SBA’s illustrious 8(a) Business Development Program. The guidance implements a streamlined social disadvantage narrative format–limiting the number of social disadvantage instances to two and asking only for direct answers to six questions for each instance. The “new” format really just hones in on the elements SBA has always asked for 8(a) social disadvantage narratives to demonstrate, substantively, not changing a thing. Nevertheless, SBA has been quite firm in requiring this new, short and sweet, structured format–so let’s dig into it a bit.

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SBA and Industry Leaders Reaffirm Support for 8(a) Program in Light of Recent Judicial Attacks

This week, the SBA published a press release affirming its continued support of its 8(a) Business Development Program in response to recent 8(a) Program attacks in the courts. In the press release, business industry leaders across the nation joined SBA Administrator, Isabella Casillas Guzman, in praising the 8(a) Program, its successful history, and its driving policy and spirit.

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UPDATE: SBA Reopens its Certify Site for all 8(a) Program Applicants

It’s the moment many have been waiting for–SBA has reopened its Certify portal to new applicants seeking admission into the 8(a) Business Development Program. SBA closed the portal to all new 8(a) Program applicants in early August 2023, following a decision from the Federal District Court of the Eastern District of Tennessee that took away applicant’s presumption of social disadvantage for certain designated groups. This resulted in all 8(a) participants being required to submit a social disadvantage narrative. To address this issue, SBA opened Certify bit by bit to current participants who had not previously submitted a social disadvantage narrative, prioritizing current 8(a) participants with pending awards followed by current 8(a) participants without pending awards. Now, SBA has opened Certify to new applicants that wish to apply for participation in the 8(a) Program who now must demonstrate their social disadvantage.

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DoD FAR Deviation Addresses 8(a) Social Disadvantage Changes

It’s no secret that the 8(a) federal government contracting world has been in a bit of an upheaval this summer. When the Eastern District of Tennessee published its decision for the Ultima Services Corporation case, small business federal contractors everywhere began scrambling to keep up to date on how various agencies would react. We here at SmallGovCon have been keeping up to date on the developments as they happen. This time, we have more information on how the Ultima Services Corporation case will affect procurements with the Department of Defense, thanks to a new class deviation effective August 24, 2023.

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