Small business owners can no longer automatically claim social disadvantage for federal contracts

The Small Business Administration is making it harder for individuals to qualify for its 8(a) federal contracting program. People who own small businesses must now prove they are socially disadvantaged, instead of being assumed to be.

For decades, the US government assumed certain groups were socially disadvantaged. This meant individuals from those groups could more easily access federal contracts set aside for small businesses. This change means the government will now treat all individuals the same. Everyone must prove their disadvantage to get these contracts.