District Court Ruling Prompts SBA to Issue Interim Guidance on 8(a) Program; Isabella Casillas Guzman Quoted

The Small Business Administration issued interim guidance on the 8(a) Business Development Program after a U.S. District Court ruled that SBA should be precluded from using the “presumption of social disadvantage” in administering the program.

SBA said Friday it also released interim guidance for federal agencies to enable them to continue awarding contracts through the 8(a) program during the remaining months of the current fiscal year.

According to the guidance document, program participants should complete and submit a social disadvantage narrative to SBA to establish their individual social disadvantage and secure new 8(a) contracts.

SBA is set to issue on Monday, Aug. 21, direct communication to program participants to provide details on the process for establishing social disadvantage for them to continue their involvement in the program.

SBA Administrator Isabella Casillas Guzman said the 8(a) program has over five decades of making government contracting more accessible for small businesses.

“As we work with the Department of Justice to continue reviewing the District Court’s ruling and evaluating the next steps, the SBA and Biden-Harris Administration remain committed to supporting this crucial program and the small business owners who have helped drive America’s strong economic growth,” added Guzman.

In 2021, President Joe Biden established a goal for federal agencies to award 15 percent of prime contracting dollars to small disadvantaged firms by FY 2025.

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