SBA Issues Interim Guidance On 8(a) Program Following Ultima Ruling

On July 19, the U.S. District Court for the Eastern District of Tennessee ruled in favor of Ultima Services Corporation, prompting the pause of new 8(a) applications and necessitating a reorganization of the program's eligibility process.

In the wake of the Supreme Court's Students for Fair Admissions decision, U.S. District Court Judge Clifton Corker found the 8(a) program's rebuttable presumption to violate the Fourteenth Amendment's Equal Protection clause as "the presumption does not further a compelling governmental interest and is not narrowly tailored to achieve that interest." The ruling has precipitated the issuance of guidance by the Small Business Administration (SBA), providing greater clarity to the current state of 8(a) eligibility and next steps for 8(a) participants. We reflect on the program, the recent decision, and its implications below.