On June 11, 2026, the Small Business Administration (SBA) issued a much-anticipated proposed rule aimed at overhauling the 8(a) Business Development Program. More specifically, the proposed rule, entitled “Reforms To Remove SBA’s 8(a) Program’s Rebuttable Presumption of Social Disadvantage” and codified at 91 Fed. Reg. 35433, would significantly alter how “social disadvantage” is established for purposes of 8(a) eligibility.
To a certain extent, this rule simply codifies changes that are already in effect (in practice, if not yet reflected in the regulations) as a result of the now-infamous case Ultima Servs. Corp. v. U.S. Dep’t of Agric., which enjoined the SBA from using the rebuttable presumption of social disadvantage for certain racial or ethnic classes. However, the new proposed rule goes further than that. It not only proposes an entirely new test for social disadvantage but would also allow impacts from “unlawful” DEI programs or policies (including the old 8(a) program itself!) to serve as a basis to establish social disadvantage under that new test. Without a doubt, this proposed change will have significant impacts going forward.
To fully understand the proposed changes, and their potential impact, context is critical. To that end, we break down the history and specifics of the new rule. For more information, click here.