SBA Defends 8(a) Program Reforms Amid Constitutional Challenges and Increased Scrutiny in 2026
The Small Business Administration (SBA) issued formal guidance in January 2026 restructuring the 8(a) Business Development Program, requiring individual owners to provide narratives on discrimination impacts instead of race-based presumptions ruled unconstitutional34.
SBA suspended over 1,000 firms for failing to respond to a December 2025 data call by January 19, 2026, as part of defending program integrity against fraud and constitutional concerns34.
These changes align with Trump Administration efforts to make the 8(a) program race-neutral, following the 2023 Ultima Services court ruling enjoining race-based presumptions34.
Additional scrutiny includes a Department of War audit of 8(a) sole-source contracts announced January 16, 2026, focusing on compliance and defense priorities4.
Sources:
3. https://www.hklaw.com/en/insights/publications/2026/01/sba-issues-formal-guidance-regarding-the-8a-program