WASHINGTON — Today, the U.S. Small Business Administration (SBA) issued formal guidance to SBA program officials reiterating, in alignment with policy changes implemented by Administrator Kelly Loeffler last year, that race-based discrimination within the 8(a) Business Development Program is unconstitutional and unlawful. The agency reiterated that SBA does not deny any small business owner admission to the 8(a) Program simply because they are white. The agency does not consider any business owner to be “socially disadvantaged” – and therefore eligible to participate in the program – simply because they are a member of a certain minority group. No American, including white Americans, can be denied government services based on race. Finally, as has been the case since the Trump Administration began, SBA will not approve admissions to the program based solely on unsubstantiated claims or Biden-era narratives of racial discrimination, or provide guidance to applicants to help them construct such narratives that bolster claims of discrimination, as was the practice during the Biden Administration. These reforms are just the first steps in a broader process of remediating the deficiencies in the 8(a) Program, which have been in progress for some time.

In its totality, this guidance clarifies that the 8(a) Program is open to job creators of every race – consistent with court orders, notices from the U.S Department of Justice (DOJ), and President Trump’s broader effort to eliminate DEI across the federal government – and that any race-based presumptions of social disadvantage have been inoperative since 2023. In addition to issuing this guidance, and to avoid any confusion, the SBA has further removed from its website the Biden-era “Guide for Demonstrating Social Disadvantage.”

“The Biden Administration expanded and then abused the 8(a) Program to hand out billions in taxpayer-funded government contracts to favored minorities at the direct expense of honest small businesses, which is why we ended the practice on Day One,” said SBA Administrator Kelly Loeffler. “Since then, the Trump SBA has been working to reverse the damage – and today, we’re reiterating one simple fact: the Biden-era practice of discriminating against white Americans is over, and reforms to enshrine that fact are well underway. The SBA is ending DEI in federal contracting – and our programs will remain open to all eligible job creators in compliance with federal law.”

The 8(a) Program was dramatically expanded under the Biden Administration as a vehicle for partisan and DEI preferences in federal contracting – crowding out legitimate job creators, especially white men. Since Day One, the Trump SBA has been working not only to hold bad actors accountable for abusing the program, but to ensure that it benefits only deserving entrepreneurs instead of favored minorities. As evidence of this fact, the Trump SBA accepted just 65 new 8(a) firms into the program last year – compared to over 2,100 who were accepted during the Biden Administration.

The Trump SBA is also cracking down on widespread fraud and abuse in the 8(a) Program to further ensure compliance with federal law, taking the following actions:

• In February 2025, on the first day of Administrator Loeffler’s term, the Trump SBA cut the Small Disadvantaged Business contracting goal back to its statutory 5% and ended the practice of approving firms based solely on unsubstantiated claims of racial discrimination.
• In June 2025, SBA launched the first-ever audit of the 8(a) Program in its nearly 50-year history – initiating an investigation into all high-dollar and limited-competition contracts going back over a period of fifteen years.
• In July 2025, the agency rescinded the independent 8(a) contracting authority of the U.S. Agency for International Development (USAID) after a DOJ investigation uncovered a $550 million bribery scheme involving several 8(a) contractors.
• That same month, SBA issued a letter of warning to all federal contracting officers, outlining the penalties for failing to report suspected fraud, waste, and abuse within the 8(a) Program.
• In October 2025, SBA suspended numerous 8(a) contractors following allegations of fraud involving more than $253 million in previously issued contract awards.
• In November 2025, SBA cleared the Biden-era backlog of 2,700 Veteran Small Business Certification (VetCert) applications, which accumulated after the prior Administration diverted all resources away from VetCert to increase certification approvals for the 8(a) Program.
• In December 2025, SBA ordered all 4,300 8(a) contractors to produce three years’ worth of financial documents for review by the agency in the effort root out pass-through abuse and fraud by shell companies.
• In January 2026, SBA suspended over 1,000 contractors from participation in the 8(a) Program after they failed to submit the documents SBA requested in December.
• Additionally, as core users of these contractors, the U.S. General Services Administration, Department of the Treasury and Department of War began their own internal audits of the 8(a) Program.