Compliance Stuff

On January 22, 2026, the U.S. Small Business Administration (SBA) issued  policy guidance  indicating that it will administer its 8(a) business development program on a strictly neutral basis going forward. The guidance reflects a significant change in how the agency interprets and applies the statutory requirement that participating firms be owned and controlled by “socially and economically disadvantaged” individuals. 0:00 8:26 Quick Hits On January 22, 2026, the U.S. Small Business Administration (SBA) released guidance that eliminates race-based presumptions of social disadvantage and abandons prior narrative frameworks, replacing them with a fact-specific inquiry focused on whether an individual has experienced social disadvantage. SBA’s subsequent announcement that only sixty-five companies were admitted to the 8(a) Program in 2025 signals a materially narrower program going forward , with heightened scrutiny of applications and a significantly higher bar for demonstr...

As we have previously  discussed , the Small Business Administration announced it will be  conducting an audit of the 8(a) Program . The SBA’s focus on this audit might have increased due to efforts by Senator Joni Ernst,  who recently issued a letter to the SBA asking for an investigation into the 8(a) Program . As part of this audit, the SBA has begun requesting extensive information from 8(a) entities. The same document request has been sent to 8(a) companies that are owned by individuals and to 8(a) companies owned by Alaska Native Corporations, Tribes, and Native Hawaiian Organizations. The SBA has set a deadline of  January 5, 2026 , to provide the requested information. The requested information covers the last three full fiscal years and includes financial records, payroll details, contract information, and employee lists. The specific items requested include: General Ledger  for the last three full fiscal years (CSV Files Only) Trial Balance  as o...