SBA Should Reinstate Small Businesses Suspended From 8(a) Program

“The U.S. Small Business Administration (SBA) should immediately reinstate the more than 1,000 small businesses it recently suspended from its 8(a) Business Development program. The fact that almost one quarter of the previously qualified 8(a) small businesses were unable to comply with a sudden data request that they had just a few weeks to fulfil during the holiday season is not evidence of fraud or proof that the 8(a) program is not working as it was designed. Since its implementation during the Richard Nixon administration, the 8(a) program has provided federal contracting and training opportunities for small businesses that are considered socially and economically disadvantaged. It has been one of the most effective programs at leveling the playing field and creating vital pathways to federal contracts for small businesses that have consistently faced systemic barriers to entry into the federal procurement space. 

Despite claims to the contrary, 8(a) is not an example of a so-called DEI program. It has benefited a wide range of small business owners throughout its existence, which explains why it has historically had bipartisan backing. It’s also notable that small business owners from a range of backgrounds widely support programs like 8(a). In fact, Small Business Majority’s research found that 79% of small business owners are supportive of government programs that provide assistance to targeted demographic groups and 73% believe such programs should continue. Instead of searching for excuses to gut a great program, SBA should be working to help even more small businesses through 8(a) and the agency’s other offerings.”