SBA Seeks Commentary On Nonmanufacturer Rule

On August 18, 2025, the Small Business Administration (SBA) published a notice of tribal consultation to be held in Michigan on September 17, 2025. In addition to seeking input from the Native American community on the management and operation of SBA's Capital Access and Government Contracting and Business Development programs, SBA is focusing on the nonmanufacturer rule (NMR).

The NMR generally requires that, on small business set-aside supply contracts, the prime contractor must provide the product of a small business manufacturer (or processor) if the prime itself is not the manufacturer (or processor) of the product. Currently, agencies report the full value of the prime contract as small business spend. SBA reports that it has received conflicting information about the propriety of the NMR. SBA has received some input that the "NMR unnecessarily increases the price of manufactured items purchased by the Government" but has also been told that "nonmanufacturers