SBA’s Proposed 8(a) Rule Flips the Script: DEI Programs Could Now Be Evidence of Social Disadvantage
On June 11, 2026, the U.S. Small Business Administration (SBA) published a proposed rule that would f ormally remove from its 8(a) Business Development Program regulations the rebuttable presumption of social disadvantage for members of certain racial and ethnic groups and replace it with a new eligibility test centered on whether an applicant has been harmed by unlawful discrimination, including illegal diversity, equity, and inclusion (DEI) programs. 00:00 24:53 In doing so, the proposed rule appears to flip the old presumption on its head, allowing the existence of the prior presumption to serve as evidence of discrimination against those who were excluded from it. Quick Hits The proposed rule replaces the old eligibility framework with a new test requiring applicants to show that a governmental or private entity discriminated against or was biased against their racial, ethnic, or cultural group, and that such discrimination caused them material harm. The rule explicitly identifie...