Minority-owned businesses seeking entry into the 8(a) Program can no longer rely on the benefit of the rebuttable presumption of social disadvantage.
The SBA is abandoning a presumption of socially disadvantage based on race or ethnicity (as outlined by the Federal government) and are instead requiring program participants to demonstrate that its owners are the victims of social disadvantage.
This feels like a setback for minority owned businesses and a missed opportunity for true systemic change.
The SBA's 8(a) Business Development program was created to help businesses owned and controlled by socially and economically disadvantaged individuals receive training and technical assistance designed to strengthen their ability to compete effectively in the American economy.
Requiring individuals to provide a narrative of social disadvantage, explaining how they have experienced discrimination and bias that has held them back in education, career, and/or business history , with an already well documented history of racism, gender bias and able-ism in America, is not helpful to resolving the inequaties experienced by would be program participants. This is a major change that could impact many regarding the success of their applications and the cost, time, and resources required to submit it.
Instead of placing the burden on participants, the SBA should expand the definition of social disadvantage and require states to provide documentation as to how social disadvantage does NOT apply to them, as evident by data such as no disparities in wealth gaps, education, etc. by race, gender or physical ability in order to waive the presumption of social disadvantage.
Kommentare