On September 10, 2026, a final rule revises 13 CFR 124.103 and removes the 8(a) program's race-based presumption of social disadvantage. Individually owned applicants must now show evidence that a policy or practice discriminated against their group, then self-certify group membership and material harm. SBA has said it will return pending individual applications so applicants can meet the new test.
If you win a small-business set-aside, there's a rule that limits how much of that work you can hand off to a subcontractor. For most services and supply contracts, you can't pay outside subcontractors more than 50% of what the government pays you for the job. A lot of contractors have heard this as "51%." That's not right, and getting it wrong can put your award at risk. The good news: once you understand how it's actually calculated, it's very manageable to stay on the right side of it.
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8(a) status can open doors. It can also create delays if your documents and planning aren’t solid.
The federal government is actively working to award contracts to businesses in historically underutilized areas, and your business location could be your competitive advantage. The HUBZone program represents approximately $23 billion in annual contracting opportunities, with agencies increasingly focused on meeting their 3% spending goals.
Right now in 2025, the 8(a) Business Development Program, administered by the U.S. Small Business Administration (SBA), helps small, disadvantaged businesses access federal contracts. It provides set-aside and sole-source opportunities, business development support, and mentoring. Recent legal changes have affected eligibility requirements, making it more important than ever for businesses to understand how the program works.
