Comment on FR Doc # 2026-11765
Jennifer DahnSupportIndividual
Summary: The commenter supports the proposed rule to remove the rebuttable presumption of social disadvantage for individually owned firms, arguing that the previous system was unconstitutional race-based discrimination. They contend that replacing group-based presumptions with objective, evidence-based standards promotes merit, ensures equal protection, and better serves the goals of the Small Business Act.
<br/>I strongly support this proposed rule to remove the rebuttable presumption of social disadvantage for individually owned firms in the 8(a) Business Development Program. This change aligns the program with constitutional requirements under the Fifth Amendment’s equal protection guarantees, statutory intent, and basic principles of fairness.<br/><br/>The prior system, which presumed social disadvantage based on membership in certain designated racial or ethnic groups while requiring others (particularly white Americans) to clear a much higher bar, was unconstitutional race-based discrimination. As the *Ultima Services* decision highlighted and the Department of Justice has acknowledged, this approach violated equal protection by categorizing and favoring individuals solely on the basis of race and ethnicity rather than individual circumstances. It effectively excluded large segments of American society from meaningful participation, undermining the program’s goal of aiding truly disadvantaged small businesses.<br/><br/>This reform is a necessary and targeted correction. By eliminating the group-based presumption for individually owned firms (while appropriately leaving entity-owned firms like those by tribes, ANCs, NHOs, and CDCs unaffected), the rule replaces it with objective, evidence-based standards that any U.S. citizen can meet. Applicants must demonstrate specific instances of discrimination or bias by a governmental or private entity—such as discriminatory policies, DEI mandates, or preferences favoring other groups—that occurred during their lifetime and resulted in concrete negative impacts like lost access to capital or diminished economic advancement.<br/><br/>This race-neutral approach:<br/><br/>- Promotes genuine merit and equal opportunity.<br/>- Reduces fraud and abuse risks by focusing on verifiable facts rather than assumptions.<br/>- Better serves the Small Business Act’s purposes of supporting small businesses, preserving free enterprise, and ensuring fair competition.<br/>- Opens the program to all deserving Americans who have faced real barriers, regardless of race.<br/><br/>The 8(a) program should help socially and economically disadvantaged entrepreneurs succeed—not serve as a vehicle for racial preferences or political favoritism. This proposed rule restores integrity, constitutionality, and effectiveness to the program.<br/><br/>I urge the SBA to finalize this rule promptly. Thank you for addressing this important issue.<br/>