SBA Issues Clarifying Guidance That Race-Based Discrimination is Not Tolerated in the 8(a) Program

The U.S. Small Business Administration issued formal guidance to its program officials. The guidance reiterates that race-based discrimination within the 8(a) Business Development Program is unconstitutional and unlawful. It states that the agency does not deny any small business owner admission to the program simply because they are white. The agency clarified that it does not consider any business owner to be socially disadvantaged simply because they are a member of a certain minority group. No American, including white Americans, can be denied government services based on race. The guidance says the agency will not approve admissions based solely on unsubstantiated claims or Biden-era narratives of racial discrimination, or provide assistance to applicants to construct such narratives. The 8(a) Program is open to job creators of every race. This is consistent with court orders, notices from the U.S. Department of Justice, and efforts to eliminate diversity, equity and inclusion practices across the federal government. Race-based presumptions of social disadvantage have been inoperative since 2023. SBA Administrator Kelly Loeffler said the Biden Administration expanded and abused the program to hand out contracts to favored minorities at the expense of honest small businesses. She said the practice of discriminating against white Americans is over. The agency has removed the Biden-era guide for demonstrating social disadvantage from its website. Job creators who believe they have been unconstitutionally excluded from the program are encouraged to contact the agency at [email protected].