On January 22, 2025, the U.S. Small Business Administration (SBA) released policy guidance for the 8(a) Business Development Program. This guidance states that:
- The 8(a) program is a race-neutral program that will not give preference nor presumptively deny an application based solely on race.
- The SBA will not approve applications using “social disadvantages narratives,” and the SBA will not utilize the “Guidance for Demonstrating Social Disadvantage.”
- SBA employees treat all Americans fairly and equally in compliance with Executive Orders 14151 (Ending Radical and Wasteful Government DEI Programs and Preferences) and 14173 (Ending Illegal Discrimination and Restoring Merit-Based Opportunity).
- SBA will consider whether an individual is “socially disadvantaged” based on factors such as whether the individual had been the victim of illegal or radical DEI policies, illegal affirmative action policies, or the victim of discriminatory practices such as race-based quotas, set asides, or hiring targets by governmental or non-governmental actors.
GUIDANCE:
GUIDANCE FOR DEMONSTRATING SOCIAL DISADVANTAGE:
SBA’s 2023 Update: Demonstrating 8(a) Social Disadvantage
EXECUTIVE ORDERS:
EO 14151 Ending Radical and Wasteful Government DEI Programs and Preferencing
EO 14173 Ending Illegal Discrimination and Restoring Merit-Based Opportunity
CONTACT: David Mullis
EMAIL: david.mullis@sba.gov
TOPIC(S): Regulatory Alerts
TAG(S): SBA
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