"SBA said in December that it sent letters to all 4,300 8(a) companies asking for three years' worth of financial documents, including bank statements, financial statements, general ledgers, payroll registers, contracting and subcontracting agreements, and employment records. The agency gave companies a Jan. 5 deadline for submitting the records. "Firms that fail to comply by January 5, 2026, may lose their eligibility to participate in in the 8(a) program and could face further investigative and remedial actions," SBA said at the time."
"SBA made this data call as part of its ongoing audit of the 8(a) program to root out potential fraud and roll back what the Trump administration sees as unlawful diversity, equity and inclusion practices. According to a report by the Schooner+Moriarty law firm, SBA's notice to the suspended contractors said the portal for submitting data will remain open until Feb. 19. But it is unclear whether submitting their data by then will result in SBA lifting their suspension."
The Small Business Administration suspended at least 1,000 contractors from the 8(a) program for failing to submit requested financial data. The agency sent letters to all 4,300 8(a) companies demanding three years of records, including bank statements, financial statements, general ledgers, payroll registers, contracting and subcontracting agreements, and employment records, with a Jan. 5, 2026 deadline. The data call is part of an audit intended to detect potential fraud and to roll back what the Trump administration views as unlawful diversity, equity and inclusion practices. A notice indicated the portal remains open until Feb. 19, but it is unclear if submissions will lift suspensions.
Read at Nextgov.com
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