The SBA announced yesterday in a news release that it has suspended “over 1,000 contractors” from participating in the 8(a) Program because they did not turn in the documents the SBA demanded that the produce by the deadline of January 19, 2025. This announcement, is actually buried in the news release so too find this announcement, look at all the bullets at the end, it is the second from last bullet.
Given this, as of today about a quarter of all 8(a) businesses are now suspended.
Looking back, in December, the SBA issued an ordered to all 8(a) contractors, of which there is about 4,300, to produce documents to the SBA so the SBA could review to see if there was fraud and abuse related to their 8(a) status – that is was the 8(a) a front company for another government contractor to get 8(a) set aside contracts.
The 8(a) contractors had to upload to the SBA portal, three years’ of business records like: bank statements, financial statements, payroll, contracts, subcontracts and employment records.
It now seems that contractors who either failed to upload the materials by the deadline or who may not have provided all the materials are now suspended.
Contractors that received a notice of suspension must act quickly if they intend to challenge the suspension because the regulations have stringent timelines within which a suspended contractor must act. Suspension can be challenged by filing a challenge with the SBA’s Office of Hearings and Appeals.
