SBA moves to revise 8(a) rules while preserving tribal, ANC eligibility

June 14, 2026 - 04:15

The U.S. Small Business Administration has proposed changes to its 8(a) Business Development Program. The new rule would remove race-based presumptions of social disadvantage for individually owned businesses. However, it would leave eligibility standards unchanged for tribally owned enterprises, Alaska Native corporations, and other Native entity-owned participants.

In both the title and summary of the proposed rule published in the Federal Register, the SBA stressed that the changes apply only to individually owned firms. They do not impact entity-owned firms, including tribes, Alaska Native corporations, Native Hawaiian organizations, and community development corporations.

The proposed rule, announced June 11, would require all individual applicants to submit evidence showing social disadvantage. Membership in a racial or ethnic group alone would no longer establish eligibility, according to the SBA. For Indian Country, the agency said eligibility standards for businesses owned by federally recognized tribes, Alaska Native corporations, Native Hawaiian organizations, and community development corporations would remain unchanged.

This proposal follows a May 28 letter from the Department of Defense. In that letter, Under Secretary of Defense for Acquisition and Sustainment Michael P. Duffey wrote that participation by tribes and Alaska Native corporations in the 8(a) program is based on their political status under federal law, not on diversity, equity, and inclusion initiatives.

The SBA proposal also comes after a 2023 federal court ruling that found the program's rebuttable presumption of social disadvantage for certain racial and ethnic groups unconstitutional. SBA Administrator Kelly Loeffler said the proposed rule would create a single standard for individual applicants by requiring evidence of social disadvantage.

The 8(a) program provides business development help and access to federal set-aside and sole-source contracting opportunities. It remains a major source of federal contracting revenue for tribal enterprises and Alaska Native corporations. Native-owned firms received $16.1 billion of the program's roughly $26 billion in federal contract awards during fiscal 2024.

The proposal arrives amid ongoing concerns from Native contractors about SBA administration of the program. In May, the Native American Contractors Association and 53 Native-owned businesses urged the SBA to address delays in processing 8(a) applications. They said some reviews had stretched past regulatory deadlines and appeared to have stalled since August 2025.

The proposed rule is open for public comment through July 13. The Federal Register notice does not mention tribal consultation or indicate whether the SBA determined consultation was unnecessary because tribal eligibility standards are unchanged. The SBA has not announced when the proposed rule would take effect. The agency is expected to accept public comments before issuing a final rule.