Ranking Member Edward J. Markey (D-Mass.) has issued a statement following the Trump administration’s Small Business Administration (SBA) decision to suspend over 1,000 small business contractors in the 8(a) Business Development Program. The program is intended to provide federal contracting opportunities and training for small business owners who are socially and economically disadvantaged.
As the Ranking Member of the Senate Committee on Small Business and Entrepreneurship, Senator Markey has emphasized his commitment to protecting federal programs that address historic discrimination against minority and underserved small business owners.
Markey stated: “Once again, the Trump administration is demonizing minority and underserved communities based on political whims continuing their campaign of contempt against communities of color. The 8(a) program was created more than 45 years ago to increase contracting opportunities for small businesses that have experienced systemic discrimination. Despite SBA’s false claims, this program is, and always has been, open to anyone that qualifies.”
He continued: “Administrator Loeffler claims that minority groups have received outsized favorable treatment. The irony is that the only ones receiving favorable treatment are large businesses with ties to the Trump administration: earlier this week, $1.6 billion in government contracts were made to a corporation connected to Commerce Secretary Howard Lutnick’s children.”
Markey also addressed concerns about oversight processes: “While it’s important that proper oversight is conducted on any government program to protect against fraud, waste, and abuse, Trump’s SBA is putting the cart before the horse. It’s clear its investigation into the 8(a) program appears to have a fixed outcome. More than a quarter of all 8(a) firms have been suspended, not because of fraud or failed contracts, but because these firms were set up to fail by the SBA. The agency asked 4,300 small contractors to submit extensive paperwork with limited guidance and time to comply with the request. Small businesses operate on thin margins and don’t have teams of lawyers and accountants to comply with rushed requests sent out on a whim over the holidays.”
On December 5th, SBA required every firm in the 8(a) program to provide detailed financial information within an initial period of just 31 days during holiday season; this deadline was later extended until January 19th.
Senator Markey along with Senator Mazie Hirono (D-Hawaii), wrote a letter on December 23rd expressing concern about whether affected firms could meet these documentation requirements as part of what they described as an “investigation” into the program. According to Markey's office, SBA did not respond.
The Senate Small Business and Entrepreneurship Committee operates from Washington D.C., examining aspects of federal budget policy including oversight functions that support congressional fiscal planning (official website). The committee provides Congress with policy options regarding budget components while contributing nonpartisan analysis through its work overseeing agencies like the Congressional Budget Office (official website). Established under legislation passed in 1974 (official website), it plays an ongoing role in national fiscal oversight.
