SBA Proposes to Eliminate the Rebuttable Presumption of Social Disadvantage for Individually Owned 8(a) Firms: What Contractors Need to Know

Short summary

The SBA proposes eliminating the rebuttable presumption that designated minorities are socially disadvantaged in its 8(a) program, replacing it with a race-neutral test requiring all applicants to prove discrimination against their clearly definable group caused material harm. Current participants and entity-owned firms are unaffected; comments due July 13, 2026.

• •Rebuttable presumption of social disadvantage eliminated for individually owned 8(a) applicants
• •New race-neutral test requires proving discrimination and material harm to clearly definable group
• •Comment deadline July 13, 2026; current participants and entity-owned firms expressly excluded

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