WASHINGTON, D.C. – Today, Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, wrote to Administrator Guzman of the Small Business Administration (SBA) regarding the agency’s implementation of the recent court order related to narrative reviews within the SBA’s 8(a) business development program.

Read the full letter here.

Read excerpts from the letter below:

“The Committee on Small Business (the Committee) is investigating the Small Business Administration’s (SBA) implementation of the recent court order related to narrative reviews within the SBA’s 8(a) business development program (8(a)). The 8(a) program provides participants with training, technical assistance, and contracting opportunities but is generally limited to small businesses owned and controlled by socially and economically disadvantaged individuals. Considering the updated requirements under the court order have a significant impact on how the SBA administers this program, the Committee seeks information on the SBA’s compliance with the expanded program obligations.

“On July 19, 2023, the U.S. District Court for the Eastern District of Tennessee enjoined the SBA’s use of its “rebuttable presumption” of the social disadvantage designation for eligibility in the 8(a) program. Prior to the District Court’s ruling, the SBA presumed individuals who are members of certain racial and ethnic groups to be socially disadvantaged, thus meeting a key criteria to enter into the 8(a) program. The District Court found this violated the Fifth Amendment’s Due Process Clause. In light of this ruling, the SBA now requires 8(a) applicants and participants to provide a narrative detailing an individual’s assertion of social disadvantaged status, unless they previously provided a narrative to the SBA. The SBA created a task force to help review the increased volume of narratives. While SBA acknowledges these individuals have received three trainings, it is imperative to ensure that reviews are being done in accordance with 13 C.F.R. § 124.103(c) and other relevant statutes.”

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