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WASHINGTON — Today, Rep. Nydia M. Velázquez (D-NY), Ranking Member of the House Small Business Committee, issued the following statement on the Small Business Administration’s recent actions targeting the 8(a) Business Development Program: 

“The SBA’s decision to target the use of a key small business contracting program and pressure federal agencies is deeply disappointing. This move strays from the agency’s core mission. Instead of helping small businesses compete in the federal marketplace, SBA is stripping away the very tools that enable them to succeed.

Small businesses drive competition, innovation, and cost savings in government contracting. Programs like 8(a) strengthen our economy, support national security, and create opportunities for disadvantaged entrepreneurs and their communities. But that only works when SBA is advocating for them, not undercutting them.

The case SBA cites already resulted in enforcement action from the Justice Department, which shows that existing laws may not be perfect but are working to root out and penalize fraud. SBA is now using that single case to cast doubt on the entire 8(a) Program without offering any evidence of a broader issue. If the agency has legitimate concerns, it should be transparent. So far, it has offered only selective and misleading claims.

Even more troubling is the timing. SBA made this announcement during the final quarter of the fiscal year, before completing the audit it announced last month. This has the potential to reduce small business participation in federal contracting and limit the dollars flowing to firms that need them most.” 

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