# 2026-16370: SBA Ditches Disadvantage Presumption for Solo 8(a) Firms, Tribes Unaffected 2026-16370, Reforms to 13 CFR 124.103 To Remove SBA's 8(a) Program's Rebuttable Presumption of Social Disadvantage for Individually Owned Firms Only. Reforms Do Not Impact Entity-Owned Firms, is a Federal Register rule from Small Business Administration published 2026-08-11, effective 2026-09-10; PRIA reads it as touching household money (as of 2026-08-18). - Canonical: https://policyrisk.com/federal-register/2026-16370 - As of: 2026-08-18 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-16370 - Title: Reforms to 13 CFR 124.103 To Remove SBA's 8(a) Program's Rebuttable Presumption of Social Disadvantage for Individually Owned Firms Only. Reforms Do Not Impact Entity-Owned Firms - Type: Rule - Agencies: Small Business Administration - Citation: 91 FR 51568 - Published: 2026-08-11 - Effective: 2026-09-10 - Comments close: not stated - Significant: no - Touches household money: yes - Regulation identifier numbers: 3245-AI75 - Last updated: 2026-08-18 ## In one line SBA Ditches Disadvantage Presumption for Solo 8(a) Firms, Tribes Unaffected ## Summary The U.S. Small Business Administration ("SBA" or "Agency") amends its regulations to align the Section 8(a) Business Development Program (8(a) BD program) with constitutional requirements and the law. The rule applies only to the 8(a) BD eligibility of small businesses owned and controlled by individuals. It does not in any way amend or affect the eligibility of entity-owned small businesses (i.e., those owned by tribes, Alaska Native Corporations, Native Hawaiian Organizations, or Community Development Corporations). Specifically, the rule amends SBA's regulations to remove the rebuttable presumption that individuals belonging to certain designated groups are socially disadvantaged and sets forth revised standards for individuals establishing social disadvantage. ## Effects PRIA read - Removal of race-based presumption: benefit, low. SBA removed the 8(a) program's rebuttable presumption that members of certain racial or ethnic groups are socially disadvantaged for individually‑owned firms and replaced it with a new, race‑neutral test. Under the new test an individual must show that an identifiable group suffered discrimination… - Entity‑owned firms remain unchanged: benefit, low. The rule explicitly does not change eligibility or requirements for entity‑owned 8(a) firms (for example, firms owned by tribes, Alaska Native Corporations, Native Hawaiian Organizations, or Community Development Corporations). Entity-owned firms are not required to establish social disadvantage un… - Pending individual applications must meet new test: cost, low. The rule is effective September 10, 2026 and applies to all pending applications of individually‑owned applicants as of that date. Any individually‑owned applicant not yet admitted to 8(a) by that date must meet the new test to establish social disadvantage. - Current certified participants unaffected: benefit, low. SBA states that determinations of social disadvantage are a one‑time determination. Individuals who have already been found socially disadvantaged and admitted to the 8(a) program do not need to re‑establish that status under the new rule. - Application form and data collection changes: benefit, low. SBA revised its information collection (OMB Control No. 3245-0374, SBA Form 2413) to change what applicants must submit to establish social disadvantage and removed questions on race and ethnicity. The Unified Certification System is estimated at 29,329 annual responses and 39,330 total annual burd… ## Related documents - [2025-12584](https://policyrisk.com/federal-register/2025-12584): Small Business Investment Company (SBIC) Regulatory Amendments, 2025-07-07 - [2025-10156](https://policyrisk.com/federal-register/2025-10156): HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs; Correction, 2025-06-04 - [2025-02741](https://policyrisk.com/federal-register/2025-02741): HUBZone Program Updates and Clarifications, and Clarifications to Other Small Business Programs; Correction, 2025-02-18 - [2026-22469](https://policyrisk.com/federal-register/2026-22469): Presidential Declaration of a Major Disaster for the State of Texas, 2026-11-04 - [2026-22470](https://policyrisk.com/federal-register/2026-22470): Presidential Declaration of a Major Disaster for Public Assistance Only for the State of Florida, 2026-11-04 - [2026-22520](https://policyrisk.com/federal-register/2026-22520): Data Collection Available for Public Comments, 2026-11-04 ## Sources - [2026-16370 on federalregister.gov](https://www.federalregister.gov/documents/2026/08/11/2026-16370/reforms-to-13-cfr-124103-to-remove-sbas-8a-programs-rebuttable-presumption-of-social-disadvantage) - [2026-16370 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-08-11/pdf/2026-16370.pdf) ## Related - [Previous: 2026-16365, Geographic Targeting Order Imposing Recordkeeping and Reporting Requirements on…](https://policyrisk.com/federal-register/2026-16365) - [Next: 2026-16374, NRC Modernization: Rulemaking Procedure, Federal Advisory Committee Act Alignme…](https://policyrisk.com/federal-register/2026-16374) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-16370 (as of 2026-08-18).