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Posted on 01/29/2026 12:03:41 PM PST by thegagline
Today, the U.S. Small Business Administration (SBA) announced the suspension of 1,091 firms from the 8(a) Business Development Program – representing about 25% of all firms registered to participate in the federal government contracting program. The suspension comes after the firms failed to meet the agency’s January 19th deadline to submit three years’ worth of financial documents.
In December, the SBA ordered all 4,300 firms to submit basic documentation to prove their legitimacy as part of the Trump SBA’s longstanding effort to root out small business contracting abuse by pass-through and shell companies that proliferated across the program during the Biden Administration.
Of the 1,091 suspended firms, about half have received some form of payment for contracted work with the federal government since 2021. Collectively, they have received payments of over $5 billion in the last four years.
The 8(a) Program was abused during the Biden Administration to benefit favored minority groups at the expense of every other legitimate small business owner in America, including white Americans,” said SBA Administrator Kelly Loeffler. “The Trump Administration has acted from Day One to dismantle the discriminatory agenda that put white small business owners at a disadvantage, and to crack down on the fraud and corruption that proliferates within DEI programs.
Today, we are suspending over 1,000 8(a) firms who have refused to provide basic documents that every legitimate business should have on-hand. As we continue to eliminate bad actors from this program, we also look forward to introducing robust reforms in the coming weeks to bring total integrity back to federal contracting.” Since January of last year, the Trump SBA has worked to end discrimination and crack down on fraud within the 8(a) Program for “socially and economically disadvantaged” small businesses, which dramatically expanded under the Biden Administration as a vehicle for DEI favoritism in the federal contracting marketplace. While the Biden Administration accepted over 2,200 new 8(a) firms into the Program over its four-year term, the Trump SBA accepted just 65 last year.
On Day One, the agency reduced the “Small Disadvantaged Business” contracting goal for the federal government from 15% to its statutory 5%. The Trump SBA also ended the practice of accepting firms into the 8(a) Program based solely on unsubstantiated claims and Biden-era narratives of racial discrimination. As the agency reiterated last week, it does not deny applicants admission to the 8(a) Program simply because they are white – and will not consider any applicant to be “socially disadvantaged” simply because they are a member of a minority group. In addition to the SBA’s work to end unlawful discrimination within the 8(a) Program, the agency has also taken unprecedented action to crack down on fraud and abuse. In 2025, the Trump SBA launched the first audit of the 8(a) Program in its nearly 50-year history and issued numerous suspensions.
The Trump SBA has taken the following actions to scale back the 8(a) Program and crack down on widespread fraud and abuse: In February 2025, on the first day of Administrator Loeffler’s term, the Trump SBA cut the Small Disadvantaged Business contracting goal back to its statutory 5% and ended the practice of approving firms based solely on unsubstantiated claims of racial discrimination.
In June 2025, SBA launched the first-ever audit of the 8(a) Program in its nearly 50-year history – initiating an investigation into all high-dollar and limited-competition contracts going back over a period of fifteen years. In July 2025, the agency rescinded the independent 8(a) contracting authority of the U.S. Agency for International Development (USAID) after a DOJ investigation uncovered a $550 million bribery scheme involving several 8(a) contractors.
That same month, SBA issued a letter of warning to all federal contracting officers, outlining the penalties for failing to report suspected fraud, waste, and abuse within the 8(a) Program.
In October 2025, SBA suspended numerous 8(a) contractors following allegations of fraud involving more than $253 million in previously issued contract awards.
In November 2025, SBA cleared the Biden-era backlog of 2,700 Veteran Small Business Certification (VetCert) applications, which accumulated after the prior Administration diverted all resources away from VetCert to increase certification approvals for the 8(a) Program.
In December 2025, SBA ordered all 4,300 8(a) contractors to produce three years' worth of financial documents for review by the agency in the effort to root out pass-through abuse and fraud by shell companies.
In January 2026, SBA suspended over 1,000 contractors from participation in the 8(a) Program after they failed to submit the documents SBA requested in December.
Additionally, the U.S. Department of War (DOW) and the U.S. Department of the Treasury have also each launched their own independent audits of the 8(a) Program.
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The suspension comes after the firms failed to meet the agency’s January 19th deadline to submit three years’ worth of financial documents.
and indication of further inquiry for the suspended ones.
In 2025, the Trump SBA launched the first audit of the 8(a) Program in its nearly 50-year history and issued numerous suspensions.
Wow, such wonderful news.
This is just awesome.
Going to really help out veterans, too.
It is winning. First time in 57 years that 8(a) has been rolled back.
But it should be completely demolished. It was started by the SBA bureaucrats in 1968 without any Congressional initiation.
Such discrimination was expressly NOT authorized in the ‘64 Civil Rights act. In fact, 8(a) was not Congressionally approved until 1978 ( Small Business Investment Act ), 10 years after the administrative state had started engaging in their rampant discrimination.
Lord thank you for giving America’s people POTUS Donald Trump, a leader who has had the courage to expose and have prosecuted criminal politicians at every level of government and their allied criminal anarchists currently waging war in the streets.
I sold to the feds back in the 70s and everyone knew that it was a scam.
This was before the term "DEI" was used but it was a front cover using blacks, women and Latins as cover for no bid contracts.
More congress critters got rich because of this scam with the exception of "legal" stock transactions.
Total scam.
More winning! No wonder why the Democrats are fueling and funding riots and insurrection. They have nothing but contempt for the working-class White people and our veterans.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>...
BINGO! You have described then perfectly!
If a business is still failing and needs welfare after three years it is time to close up shop. I’ve had my business going on 20 years now and the government has done everything in their power to shut me down. Sounds crummy but I have really been tempted to hire a black female veteran (the worst I ever served with were black women and they couldn’t even swim in the CG but they got graduated and promoted anyway) to be the face of the company.
Worked for a company that scooped up the work from companies that were awarded minority owned government contracts. They couldn’t possibly perform the work so we subcontracted with them to actually perform the work. Note that many companies worked as subcontractors because of the volume of contracts were awarded by could not be performed by the original contractor.
SBA did keep lots of businesses afloat during the pandemic.
It was also WAY too easy to scam the system.
I would get calls once a month wanting to give me 500k to boost my business.
The sad thing is we’ll be right back to the old level of corruption as soon as the democrats regain control. Some of it will start when the Republicans blow the mid-terms and ‘reach across the aisle’.
Here in Northern Virginia, the big news was Booz-Allen losing its government contracts. You could hear the wailing from DC to the outer suburbs.
From Wiki: “ Booz Allen Hamilton Holding Corporation (informally Booz Allen)[4] is the parent of Booz Allen Hamilton Inc., an American company specializing in digital transformation and artificial intelligence.[5][6][7] The company is headquartered in McLean, Virginia,[8] in the Washington metropolitan area, with 80 additional offices around the globe. Booz Allen’s stated core business is to provide consulting, analysis, and engineering services to public- and private-sector organizations and nonprofits.[9][10]
It is a major provider of cybersecurity services to the U.S. Security and Exchange Commission.[11][12] Nearly all of the company’s revenue comes from U.S. government contracts.[”
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