Action is Latest in Year-Long Effort to Dismantle DEI Discrimination, Expose Fraud, and Restore Fairness in Federal Contracting
WASHINGTON — Today, the U.S. Small Business Administration (SBA) issued formal guidance to SBA program officials reiterating, in alignment with policy changes implemented by Administrator Kelly Loeffler last year, that race-based discrimination within the 8(a) Business Development Program is unconstitutional and unlawful. The agency reiterated that SBA does not deny any small business owner admission to the 8(a) Program simply because they are white. The agency does not consider any business owner to be “socially disadvantaged” – and therefore eligible to participate in the program – simply because they are a member of a certain minority group. No American, including white Americans, can be denied government services based on race. Finally, as has been the case since the Trump Administration began, SBA will not approve admissions to the program based solely on unsubstantiated claims or Biden-era narratives of racial discrimination, or provide guidance to applicants to help them construct such narratives that bolster claims of discrimination, as was the practice during the Biden Administration. These reforms are just the first steps in a broader process of remediating the deficiencies in the 8(a) Program, which have been in progress for some time.
In its totality, this guidance clarifies that the 8(a) Program is open to job creators of every race – consistent with court orders, notices from the U.S Department of Justice (DOJ), and President Trump’s broader effort to eliminate DEI across the federal government – and that any race-based presumptions of social disadvantage have been inoperative since 2023. In addition to issuing this guidance, and to avoid any confusion, the SBA has further removed from its website the Biden-era “Guide for Demonstrating Social Disadvantage.”
“The Biden Administration expanded and then abused the 8(a) Program to hand out billions in taxpayer-funded government contracts to favored minorities at the direct expense of honest small businesses, which is why we ended the practice on Day One,” said SBA Administrator Kelly Loeffler. “Since then, the Trump SBA has been working to reverse the damage – and today, we’re reiterating one simple fact: the Biden-era practice of discriminating against white Americans is over, and reforms to enshrine that fact are well underway. The SBA is ending DEI in federal contracting – and our programs will remain open to all eligible job creators in compliance with federal law.”
The 8(a) Program was dramatically expanded under the Biden Administration as a vehicle for partisan and DEI preferences in federal contracting – crowding out legitimate job creators, especially white men. Since Day One, the Trump SBA has been working not only to hold bad actors accountable for abusing the program, but to ensure that it benefits only deserving entrepreneurs instead of favored minorities. As evidence of this fact, the Trump SBA accepted just 65 new 8(a) firms into the program last year – compared to over 2,100 who were accepted during the Biden Administration.
Any job creator who believes they have been unconstitutionally excluded from participation in the 8(a) Program is encouraged to contact the SBA at certifications@sba.gov. Additionally, to address fraud, illegality, and Constitutional concerns in the 8(a) program, the SBA is hiring additional program officers who can help administer the 8(a) Program as a race-neutral vehicle for small business success in a fair and lawful manner. If you are interested in applying, you may inquire about open roles at HR4U@sba.gov by submitting an email with “8(a)” in the subject line.
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About the 8(a) Business Development Program
The SBA certifies small businesses considered to be socially and economically disadvantaged under its nine-year 8(a) Business Development Program. The 8(a) program helps these firms develop and grow their businesses through one-to-one counseling, training workshops and management and technical guidance. It also provides access to government contracting opportunities, allowing them to become solid competitors in the federal marketplace.
About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.