SBA is currently developing a new narrative process, but until the new process is in place, SBA will process individual claims of social disadvantage under our existing narrative process. Agencies can immediately continue to send offer letters to SBA.
SBA is encouraging its continued use as federal agencies identify 8(a) and other socio-economic small businesses to help meet critical mission needs, including during the end of the fiscal year, typically a time of increased usage of the program. The 8(a) program remains open for business. Consistent with existing regulations, 8(a) applicants and 8(a) participants will only need to establish social disadvantage once for their program term, unless there are ownership/control or other changes which affect eligibility. With respect to social disadvantage, SBA will interpret the firm’s certification that it remains eligible for the 8(a) program as stating only that there have been no changes to the information the participant previously submitted in connection with its program eligibility that would affect the social disadvantage determination. They will receive a communication on Monday, August 21, 2023 which will provide them a letter stating they have met social disadvantage requirements and may proceed with 8(a) federal contract awards.Ĭurrent 8(a) participants, should continue to submit their annual review and continuing eligibility materials to SBA. Participants which previously established social disadvantage through the submission of a social disadvantage narrative and all entity-owned participants are not impacted by the court’s decision. Once a current 8(a) participant has submitted a narrative to SBA and received SBA’s approval verifying personal social disadvantage, the participant will receive a letter indicating it has established social disadvantage, and may continue to receive 8(a) contracts and otherwise participate in the 8(a) program. This communication will detail the process for establishing social disadvantage or will clarify that the participant has already established social disadvantage and may proceed with federal contract awards. The Court’s decision also does not impact entity-owned firms, such as firms owned by Indian tribes, Alaska Native Corporations, or Native Hawaiian Organizations – these firms will not need to submit narratives.Īll current 8(a) participants will receive a direct communication from SBA on Monday, August 21, 2023. If you were originally admitted to the program because the qualifying owner established social disadvantage by a preponderance of the evidence, you will not need to submit a narrative. To receive new 8(a) contracts, an individual-owned 8(a) participant that previously relied on the presumption of social disadvantage to support its eligibility will need to submit information to SBA, through the system, that will allow SBA to determine whether that the individual upon whom eligibility is based has established personal social disadvantage. To comply with the Court’s order, SBA is requiring all 8(a) participants whose program eligibility is based upon one or more individuals who relied upon the presumption of social disadvantage to establish their individual social disadvantage by completing a social disadvantage narrative.
The Court’s decision also required SBA to immediately stop using the presumption of social disadvantage to administer the 8(a) program. In this ruling, the Court decided that SBA could not presume individuals to be socially disadvantaged based on their membership in one of the identified groups. This practice has been known as using a “rebuttable presumption of social disadvantage” or “presumption of social disadvantage.” Prior to this ruling, individual Asian Pacific Americans, Black Americans, Hispanic Americans, Subcontinent Asian Americans, and Native Americans could demonstrate social disadvantage by simply indicating their belonging to one of these identified groups within the application process. District Court for the Eastern District of Tennessee issued a ruling affecting the 8(a) program. Market research and competitive analysis.
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