SBA's New Rule Clarifies Role of Minority Equity Holders in Small Businesses and 8(a) Concerns

Posted under: SMB
Date: 2025-01-17
SBA Clarifies Minority Equity Holder Rules| Justo Global

The U.S. Small Business Administration (SBA) Final Rule, effective January 16, 2025, introduces critical updates for small business contractors. Key changes include uniform controls for minority investors across all SBA socioeconomic programs, easing of ownership restrictions for non-disadvantaged investors in 8(a) businesses, and clarified guidelines to avoid affiliation issues. These adjustments aim to foster capital access and support business growth while maintaining program integrity.

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