The U.S. Small Business Administration (SBA) is taking steps to strengthen the 8(a) Business Development Program by suspending 154 Washington, D.C.-based firms that failed to meet eligibility requirements, thereby opening greater opportunities for qualifying small businesses.
The targeted firms exceeded statutory net worth, asset, or income limits and collectively received nearly $1.3 billion in 8(a) set-aside and sole-source contracts from 2021 to 2024. The internal review, conducted by the Office of Government Contracting and Business Development, found that firms with total assets of $35 million or more continued to access opportunities intended for economically disadvantaged businesses.
Administrator Kelly Loeffler emphasized that the review reinforces fairness and transparency, ensuring that the program benefits small businesses that genuinely meet economic disadvantage criteria. “This initiative is about restoring integrity and opportunity, rewarding entrepreneurs who work hard to qualify for federal contracts,” she said.
The SBA’s actions mean more accessible federal contracting opportunities for eligible small businesses and a clearer, fairer marketplace for sole-source and set-aside contracts. Entrepreneurs now have greater confidence that 8(a) awards will go to firms that meet the program’s intended requirements.
Ultimately, the SBA conducted the first-ever audit of the 8(a) program in its nearly 50-year history. This audit required all 4,300 participants to submit three years of financial records for review and suspended 1,091 firms that did not comply. Reforms now ensure applicants cannot be evaluated solely on race, expanding fair access for all eligible entrepreneurs.
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