{"id":2568869,"date":"2026-02-11T17:09:02","date_gmt":"2026-02-11T22:09:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sba-terminates-economically-disadvantaged-status-from-dc-firms\/"},"modified":"2026-02-11T17:14:53","modified_gmt":"2026-02-11T22:14:53","slug":"sba-terminates-economically-disadvantaged-status-from-dc-firms","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sba-terminates-economically-disadvantaged-status-from-dc-firms\/","title":{"rendered":"SBA terminates &#8216;economically disadvantaged&#8217; status from DC firms"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsba-terminates-economically-disadvantaged-status-from-dc-firms%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2568869&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Small Business Governance announced that 154 Washington, D.C.\u2013based firms will lose their \u201ceconomically disadvantaged\u201d status and be suspended from the 8(a) program after eligibility reviews,as part of an effort to curb abuse in federal contracting set-asides. the firms were notified that they no longer meet the program\u2019s requirements and will face final termination after a 30-day suspension. SBA Administrator Kelly Loeffler framed the move as restoring integrity to federal contracting and ending discrimination and abuse in the program. The review found that these companies exceeded the program\u2019s financial thresholds, including net worth, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/todays-the-day-many-americans-will-get-1400-in-covid-19-relief-deposited-into-bank-accounts\/\" title=\"Today\u2019s The Day: Many Americans Will Get ...,400 In COVID-19 Relief Deposited Into Bank Accounts\">adjusted gross income<\/a>, and total assets, making them ineligible to qualify as economically disadvantaged. Collectively, the 154 firms received nearly $1.3 billion in 8(a) set-aside and sole-source federal contracts from 2021 through 2024, with about $1 billion awarded via <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mary-vought-our-baby-formula-crisis-has-roots-in-the-wic-program-that-cannot-be-ignored\/\" title=\"Mary Vought: Our Baby Formula Crisis Has Roots in the WIC ... That Cannot Be Ignored\">sole-source contracts<\/a>. The evaluation was conducted by SBA\u2019s Office of Government Contracting and Business Progress; the 8(a) program is a nine-year development track intended to help <a href=\"https:\/\/amzn.to\/3YuVZYV\" >disadvantaged businesses access government contracting opportunities<\/a>. This action follows January\u2019s broader move in wich the SBA suspended about 1,091 firms for failing to submit three years of required financial documentation. The agency did not release a list of the 154 companies.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">SBA moves to terminate &lsquo;economically disadvantaged&rsquo; status from over 150 DC firms<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2502373\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/small-business-administration\/\">Small Business Administration<\/a> on Wednesday said it sent letters to 154 firms located in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/Washington-dc\/\">Washington, D.C.<\/a>, informing them that they no longer meet the &ldquo;economically disadvantaged&rdquo; requirements.<\/p>\n<p>SBA Administrator Kelly Loeffler <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.sba.gov\/article\/2026\/02\/11\/sba-moves-terminate-over-150-8a-firms-washington-dc-following-eligibility-review\">said in a news release<\/a> that stripping the D.C. firms of the designation is part of a broader integrity push aimed at rooting out what she calls abuse in federal contracting set-asides.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4452916\/paramount-all-cash-offer-warner-bros-benefits\/\">Paramount sweetens all-cash offer to buy Warner Bros with &#8216;additional benefits&#8217;<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/crime\/4449347\/added-security-starbucks-ceo-growing-concerns-executives\/\">Heightened security for Starbucks CEO puts spotlight on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/calls-grow-for-staten-island-to-secede-from-nyc-as-illegal-immigrant-crisis-escalates\/\" title=\"Staten Island urged to secede from NYC amidst rising illegal immigrant crisis.\">growing safety concerns<\/a> for industry executives<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4450082\/musks-tunnels-las-vegas-safety-environmental-concerns\/\">Musk&rsquo;s underground tunnels in Las Vegas face scrutiny over safety, environmental concerns<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>&ldquo;Under President Trump, the SBA is restoring integrity to federal contracting programs that promoted both discriminatory DEI and rampant abuse during the Biden Administration,&rdquo; Loeffler said in an SBA news release. &ldquo;This Administration is enforcing the law &ndash; which means we&rsquo;re ending DEI discrimination, rooting out abuse, and removing big companies that unfairly dominated the federal contracting marketplace to the detriment of eligible, honest small business owners.&rdquo;<\/p>\n<p>The SBA said in a news release that the firms had become too large to qualify as disadvantaged. The firms were notified by letter and will be suspended from the program for at least 30 days before any final termination.&nbsp;<\/p>\n<p>The agency said the companies exceeded at least one of the program&rsquo;s statutory financial thresholds, including personal net worth limits, adjusted gross income caps, or total asset limits, that are used to determine whether a qualifying owner is economically disadvantaged.&nbsp;<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/kelly-loeffler\/\">Loeffler<\/a> said the firms collectively received nearly $1.3 billion in 8(a) set-aside and sole-source federal contracts from fiscal 2021 through 2024, with nearly $1 billion awarded through sole-source contracts.&nbsp;<\/p>\n<p>The 8(a) program is a nine-year development track that provides training and counseling and can open the door to contracting opportunities reserved for businesses deemed socially and economically disadvantaged.<\/p>\n<p>To qualify under the economic disadvantage standards, the SBA generally requires that the qualifying individual&rsquo;s net worth be $850,000 or less, adjusted gross income averaged over three years be $400,000 or less, and total assets be $6.5 million or less.&nbsp;<\/p>\n<p>The SBA said its review was conducted by the agency&rsquo;s&nbsp;Office of Government Contracting and Business Development, which routinely verifies participant eligibility.<\/p>\n<p>In describing its findings, the agency pointed to examples it said raised concerns, including one firm that reported more than $35 million in total assets &mdash; more than five times the statutory limit &mdash; and another that reported a net worth of at least $24 million while continuing to pursue set-aside opportunities.&nbsp;<\/p>\n<p>The move follows other recent actions targeting the 8(a) program.<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/4454066\/healthcare-fraud-nationwide-house-republicans-warn\/\"><strong>HEALTHCARE FRAUD HAS PROLIFERATED NATIONWIDE, HOUSE REPUBLICANS WARN<\/strong><\/a><\/p>\n<p>In late January, the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.sba.gov\/article\/2026\/01\/28\/sba-suspends-over-1000-8a-firms-program-following-december-document-request\">SBA announced that it had suspended 1,091 firms<\/a>, which amounts to roughly a quarter of the program&rsquo;s participants, after they failed to submit three years of financial documentation by an agency deadline.&nbsp;<\/p>\n<p>The SBA did not release a list of the 154 companies in its announcement. The agency said the suspension period is intended to precede final termination decisions as the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/indiana-man-formally-charged-after-weekend-block-party-kills-1-wounds-17\/\" title=\"Indiana man charged after deadly block party leaves 1 dead, 17 injured.\">proceedings move forward<\/a>.&nbsp;<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SBA ends ED status for 154 DC firms<\/p>\n","protected":false},"author":4130,"featured_media":2568870,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP25238753526291.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[73615,73616,18658,20961,69545],"class_list":["post-2568869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-economically-disadvantaged","tag-federal-contracting","tag-sba","tag-small-business","tag-washington-dc-2"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/10\/AP25238753526291.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2568869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/4130"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2568869"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2568869\/revisions"}],"predecessor-version":[{"id":2568875,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2568869\/revisions\/2568875"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2568870"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2568869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2568869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2568869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}