Christian Flask, Esq. — Flask Law, PLLC
In January 2026, the Small Business Administration suspended more than 1,000 firms from the 8(a) Business Development Program — roughly one in four active participants — for alleged non-compliance with a December 2025 data call requiring three years of financial and contractual records. Since then, SBA has moved to terminate an additional 154 firms, and independent audits by the Department of Defense, Treasury, and GSA are underway.
If your firm received a Notice of Suspension, the situation is serious. But it is not necessarily permanent, and how you respond in the next several weeks matters.
What the Suspension Means Immediately
A suspended 8(a) firm cannot receive new competitive or sole-source 8(a) awards. Your firm is, however, required to continue performing on existing 8(a) contracts, and agencies may exercise options on those contracts during the suspension period. The suspension does not automatically affect your other government contracting activity outside the 8(a) program — but that distinction requires careful review of your specific contract portfolio.
Why Some Firms Were Suspended Despite Good-Faith Efforts
SBA took a strict approach to the January 19 deadline. Firms that submitted complete responses one day late — including some whose delays were caused by errors in the government-operated MySBA Certifications portal — received suspension notices regardless. SBA has indicated that the portal remained open for data call submissions until February 19, 2026, but it has not explicitly stated that late submissions will result in reinstatement. If you submitted data after the deadline, document that submission carefully and preserve all records of any portal errors you encountered.
Your Options
Suspended firms have two primary paths. The first is an informal request to SBA for reinstatement. This involves explaining the reason for the delay or deficiency, demonstrating that the firm continues to operate as a responsible contractor, and making the case that suspension is not warranted given the circumstances. For firms whose non-compliance was technical rather than substantive — portal errors, incomplete but good-faith submissions — this is often the appropriate first step.
The second is a formal appeal to SBA’s Office of Hearings and Appeals within 45 days of the date on your Notice of Suspension. This is a hard deadline. Missing it forecloses formal appeal rights. OHA proceedings are time-consuming and outcomes are not guaranteed, but for firms with substantial 8(a) contract pipelines at stake, the appeal process may be worth pursuing.
These are not mutually exclusive. Firms can pursue informal reinstatement while preserving formal appeal rights.
What You Should Be Doing Right Now
Regardless of which path you pursue, the immediate priority is documentation and internal review. That means gathering and organizing the records SBA requested — financial statements, employee lists, contract documentation — so you understand exactly what you submitted, what may have been missing, and what your compliance posture actually looks like before you make representations to SBA.
It also means reviewing your 8(a) eligibility status independently. The broader audit context suggests SBA is scrutinizing not just data call compliance but underlying eligibility — net worth thresholds, total assets, performance of work requirements, and subcontracting arrangements. Firms that have continued to participate in the 8(a) program as their financial position changed should assess whether their current status is defensible under the program’s eligibility standards.
The Broader Context
These suspensions are part of a significant restructuring of the 8(a) program under the current administration. SBA has formally eliminated race-based presumptions of social disadvantage, dramatically reduced new certifications, and signaled ongoing scrutiny of existing participants. The DoD audit includes a line-by-line review of sole-source and set-aside awards above $20 million, with particular focus on pass-through arrangements and subcontracting compliance.
For firms that clear the current suspension, the compliance environment going forward will be materially different from what it was two years ago. Internal governance, documentation practices, and contract performance oversight are no longer just administrative requirements — they are survival requirements for continued 8(a) participation.
How Flask Law Can Help
Flask Law provides compliance advisory and contract review services to small businesses operating in regulated federal contracting environments. If your firm is navigating a suspension notice, assessing its compliance posture, or preparing documentation in response to an SBA inquiry, we can help you understand your situation and develop a structured response strategy.
Flask Law does not represent clients before federal agencies and does not accept matters directly involving the United States Government.
This article is for informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. — Flask Law, PLLC is a Florida limited liability company. Christian Flask is licensed to practice law in the State of Florida.
