GSA, SBA target more 8(a) firms for audits

The General Services Administration and the Small Business Administration are auditing nearly 700 companies that have also been suspended from the 8(a) contracting program.

SBA’s assessment of the companies found that 689 firms have not “demonstrated compliance,” but they continued to win set aside contracts valued at up to $5.5 billion.

“GSA is partnering with SBA to root out fraud, eliminate abuse, and restore accountability to federal contracting,” GSA Administrator Edward C. Forst said in a release Wednesday. “Those who manipulate the system, defraud taxpayers, and steal opportunities from legitimate small businesses will be held accountable.”

Forst said that if the audits discover suspected fraud, the cases will be referred to the Justice Department.

SBA Administrator Kelly Loeffler said her agency has spent the last 21 months identifying and suspending companies from the 8(a) program.

“Every firm we identified will now face deeper scrutiny from GSA over the taxpayer-funded contracts they secured,” she said.

The 8(a) program has been a prime target of the Trump administration as it tries to root out what it sees as illegal diversity, inclusion and equity efforts.

In January, SBA suspended 1,000 contractors from the program because they had not complied with a December 2025 request for financial documents. In March, SBA removed 628 of those suspended companies from the program.

SBA also booted another 154 8(a) companies in February for failing to meet “economic disadvantage” eligibility requirements.

All told, the number of 8(a) companies has gone down by more than 18%.

In June, SBA agency proposed eliminating any race-based edibility presumptions and opened the door for white-owned firms to join the program.