SBA Update: White/Caucasian applicants may now qualify for 8(a) with a properly worded attestation — Call 859-442-3300 to see if you qualify.

Service-Disabled Veteran and Handicap Applicants Now Have a Clearer Path to 8(a) Application Success

MAJOR CHANGE: Effective September 10, 2026, a new SBA rule (13 CFR 124.103) changes how the SBA determines Social Disadvantage for 8(a) applicants – building on a 2023 federal court ruling that struck down SBA’s old presumption that only certain racial groups were socially disadvantaged.

The 8(a) Certification can be a major sales growth engine for your small business. The average 8(a) has over $5.5 million per year in federal contracts.

NEW RULING: ULTIMA SERVICES V. U.S. DEPARTMENT OF AGRICULTURE Currently Service-Disabled Veterans and those suffering from Handicap bias, can apply and be successful with an SBA 8(a) Application. This gives Service-Disabled Veteran Owned firms access to both the SDVOSB program as well as 8(a). Effective September 10, 2026, the SBA stopped presuming social disadvantage for any group. If your disability existed and was covered under the ADA before 1990, you can qualify with a simple attestation – no narrative required, since Congress’s own findings when passing the ADA serve as the evidence. Most Service-Disabled Veterans, however, developed their disability after 1990 through their military service, so they’ll need to submit an evidence-based narrative explaining how their disability has created bias against them, backed by records or affidavits. Either way, no group receives an automatic presumption anymore – every applicant must meet the new standard through one of these paths.
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PRIOR RULE: Since 1978 or for 45 Years the 8(a) program was governed by presumption of social disadvantage for groups with minority heritage. These people fit into the following ethnic categories: Asian Pacific Americans, Black Americans, Hispanic Americans, Subcontinent Asian Americans, and Native Americans. The past 8(a) application process for Service-Disabled Veterans and Handicap Individuals generally required the production of over 20 stories going over the handicap bias that these individuals suffered. The application process for SDVOSB and Handicap individuals ended in a denial more than half of the time. Pushing forward past the denial required a time consuming and costly OHA appeal. In general, under this process we had about one to two clients per year that would move forward with this process to become 8(a) Certified. It was a high bar to get even the most Socially Disadvantaged Handicap Individuals 8(a) Certified. To help Service-Disabled Veterans and Handicap Individuals the SBA created different runways for those people. Those were the SDVOSB program and the Ability One Program.
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WHY HANDICAP INDIVIDUALS STILL WANT 8(a): The 8(a) Certification provides a second avenue for firms to obtain both sole source and set-aside contracts. The SDVOSB Certification is very powerful when working with the Veterans Administration. However, for most other agencies the 8(a) Certification provides an advantage. Having both certifications provides a stronger pathway to success in federal contracting.

NEW REQUIREMENTS: Under SBA’s new rule (effective 9/10/2026), your path depends on when your disability began. If you had an ADA-covered disability before 1990, you can qualify by simply attesting to that and to the material harm it caused – no narrative required. But most Service-Disabled Veterans developed their disability through military service after 1990, which means they’ll need to write a narrative detailing how their service-connected disability has created bias against them, backed by records or affidavits substantiating those experiences. We recommend at least two documented incidents, each supported where possible by a contemporaneous record or a signed affidavit.

TIME TO ACT: The reality is that handicap individuals are currently treated the same for purposes of obtaining the 8(a) certification as all other applicants. Therefore, if you were ever considering obtaining the 8(a) certification now would be a good time before congress alters this loophole.

If you would like to find out if your experiences would qualify you for being socially disadvantaged based upon gender bias give us a call as we are always happy go over the requirements.

NOTE: Historically, the SBA only approves handicaps that are physical/visible in nature to justify suffering from bias/discrimination. We are happy to discuss those who suffer from other types of injuries, we just want you to know upfront before you call us so that we do not create disappointment for you. There are cases where we advise even this group to go forward with an application, but we hate to provide disappointment.

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