WASHINGTON, Dec. 05, 2025 (GLOBE NEWSWIRE) -- Today, the U.S. Small Business Administration (SBA) issued letters to all contractors within the 8(a) Business Development Program, requiring them to produce financial records as part of a comprehensive effort to protect taxpayers and legitimate small businesses by rooting out fraud, waste, and abuse. All 4,300 8(a) participants are mandated to provide financial documents for the last three fiscal years, including bank statements, financial statements, general ledgers, payroll registers, contracting and subcontracting agreements, and employment records. Firms that fail to comply by January 5, 2025 may lose their eligibility to participate in the 8(a) Program and could face further investigative or remedial actions.
“There is mounting evidence that the 8(a) Program designed for ‘socially and economically disadvantaged’ businesses went from being a targeted program to a pass-through vehicle for rampant abuse and fraud – especially during the Biden Administration, which aggressively prioritized DEI over merit in federal contracting,” said SBA Administrator Kelly Loeffler. “Today, as part of the SBA’s effort to protect taxpayer dollars and restore program integrity, we’re requiring all 8(a) firms to provide basic financial documentation for SBA review. As our previously-announced government-wide audit continues, we’re committed to thoroughly reviewing every federal contract, contracting officer, and contractor – while working alongside federal law enforcement and other agencies to deliver accountability for taxpayers.”
The request comes as recent U.S. Department of Justice (DOJ) investigations and media reports have exposed a growing body of evidence of misconduct within the 8(a) Program, adding to years of credible concerns and whistleblower reports indicating that the program is a vehicle for institutionalized abuse.
Administrator Loeffler ordered a full-scale audit of the 8(a) Program earlier this year after a DOJ investigation uncovered a $550 million fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors. The audit, which is ongoing, focuses on examining high-dollar and limited-competition contracts going back over a period of fifteen years in collaboration with various federal agencies that award contracts to 8(a) participants. Last month, SBA took immediate action to suspend numerous executives and contractors following allegations of fraud involving more than $253 million in previously issued contract awards.
The U.S. Department of Treasury also recently launched its own audit of all contracts and task orders awarded under preference-based contracting, totaling approximately $9 billion in contract value across Treasury and its bureaus.
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About the 8(a) Business Development Program
The SBA certifies small businesses considered to be socially and economically disadvantaged under its nine-year 8(a) Business Development Program. The 8(a) program helps these firms develop and grow their businesses through one-to-one counseling, training workshops and management and technical guidance. It also provides access to government contracting opportunities, allowing them to become solid competitors in the federal marketplace.
About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
SBA HQ Press Team U.S. Small Business Administration press_office@sba.gov
