Senate Democrats oppose SBA rule change affecting 8(a) small business program

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Democrats oppose SBA 8(a) rule

Highlights

Senate Democrats Edward J. Markey and Mazie Hirono filed a comment letter opposing the SBA's proposed rule change to the 8(a) Business Development Program.
The senators claim the SBA's proposal lacks sufficient qualitative or quantitative evidence and fails to justify changes addressing discrimination against White Americans.
Markey and Hirono argue the rule could undermine support for minority and underserved entrepreneurs, reducing the 8(a) program's effectiveness for its original target groups.

Lawmakers' challenge to SBA proposal

As reported by Senate Committee on Small Business and Entrepreneurship, Ranking Member Edward J. Markey and Senator Mazie Hirono submit a comment letter to the Small Business Administration opposing a proposed rule change to the 8(a) Business Development Program.

The lawmakers say the proposal overlooks long-standing barriers faced by minority and underserved entrepreneurs. They argue those barriers still include reduced access to capital and contracting opportunities, along with unequal treatment and bias in business settings.

In their letter, the senators say the rule lacks a reasoned basis for claims that White Americans face discrimination requiring this policy response. They add that the agency has not provided sufficient qualitative or quantitative evidence, and they argue any final rule would need strong proof and a narrowly tailored justification.

Implications for underserved entrepreneurs

The 8(a) Business Development Program was created by Congress more than 50 years ago to help level the playing field for small business owners who have faced discrimination in starting and operating their companies. Markey and Hirono contend the proposed change diminishes the history of systemic racial and ethnic discrimination in the United States and could reduce support for businesses the program was designed to assist.

The release also places the letter within a broader campaign by Markey on small business and contracting policy. It says he has recently criticized other Trump administration actions affecting entrepreneurial development programs, minority-owned firms, and access to federal support for women, veterans, immigrants, and other underserved entrepreneurs.

Our earlier article on the SBA’s Economic Injury Disaster Loan (EIDL) program explained that eligible small businesses and private nonprofits in seven Arizona counties could still apply for disaster financing tied to the remnants of Hurricane Priscilla and Tropical Storm Raymond. We noted key terms including loans of up to $2 million, rates starting at 4% for businesses and 3.625% for nonprofits, and a 12-month payment deferral after the first disbursement—highlighting how SBA policy can directly shape access to relief and working capital.

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