Reforms to Remove SBA's 8(a) Program's Rebuttable Presumption of Social Disadvantage for Individually Owned Firms Only; Reforms Do Not Impact Entity-Owned Firms

The U.S. Small Business Administration (“SBA” or “Agency”) proposes to amend its regulations to align the Section 8(a) Business Development Program (8(a) BD program) with constitutional requirements and the law. The proposed rule applies only to the 8(a) BD eligibility of small businesses owned and controlled by individuals. It does not in any way amend or affect the eligibility of entity-owned small businesses ( i.e., those owned by tribes, Alaska Native Corporations, Native Hawaiian Organizations, or Community Development Corporations). Specifically, the proposed rule would amend SBA's regulations to remove the rebuttable presumption that individuals belonging to certain designated groups are socially disadvantaged and set forth revised standards for individuals establishing social disadvantage.