Compliance Stuff

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...

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...