Ranking Member Markey, Senator Hirono Reject Trump’s SBA Policy Proposal that Harms Underserved Small Business Owners and Entrepreneurs

Letter (PDF)

(Washington, July 17) - Ranking Member Edward J. Markey (D-Mass.) and Senator Mazie Hirono (D-Hawaii) submitted a comment letter to the Small Business Administration (SBA) opposing a proposed rule change by Trump's SBA to the 8(a) Business Development Program that would harm underserved small business owners and entrepreneurs.

The 8(a) Business Development Program was created by Congress more than 50 years ago to level the playing field for small business owners and entrepreneurs who have faced discrimination in starting and operating their businesses. The SBA's proposed change ignores the existence of historic discrimination that minority and underserved small businesses have faced and continue to face.

In the letter, the lawmakers wrote, "SBA's proposed rule ignores present-day barriers that entrepreneurs from minority and underserved communities face. Discrimination is not dead; minority entrepreneurs continue to face reduced access to contracting opportunities and capital, as well as racial threats and targeting, including unequal treatment, refusal by others to work with minority-owned firms, being called racial slurs, and bias in the workplace. These barriers lead to wide underutilization of, and less revenue for, minority-owned businesses compared to majority-owned businesses, as supported by decades of disparity studies. The proposed rule diminishes the history of systemic racial and ethnic discrimination in the United States by claiming that remedies for discrimination create discrimination in and of themselves."

The lawmakers continued, "The program has always been open to anyone who can prove they have experienced prejudice or cultural bias in education, employment, entrepreneurship, and other facets of our society. Nonetheless SBA has moved forward with the proposed rule. It lacks a reasoned basis, purporting that the federal government has discriminated against White Americans, but offering no substantive qualitative or quantitative data or research in support. If the examples provided in the proposed rule are the only basis for what constitutes discrimination to the agency, they are woefully insufficient. The final rule must provide strong evidence that there is discrimination against White individuals and show how the rule is narrowly tailored to address it. The record remains devoid of evidence of discrimination against White individuals on the basis of race."

Ranking Member Markey is fighting to protect federal programs that address historic discrimination against small business owners from minority and underserved communities, and for a small business agenda that ensures economic opportunity for all.

• In June, Ranking Member Markey released a statement condemning the SBA's proposed changes to the 8(a) Business Development Program.
• Also in June, Ranking Markey released a new report highlighting Trump's drastic reduction in federal contracting dollars awarded to American small businesses, including minority-owned small businesses.
• In February, Ranking Member Markey, alongside Senators Hirono and Cory Booker (D-NJ), and Representative Ayanna Pressley (MA-7), introduced the Strengthening Place-based Access, Resources, and Knowledge (SPARK) Act to spur entrepreneurship and increase access to capital and resources for underserved entrepreneurs nationwide. Ranking Member Markey previously held a field hearing in Roxbury, Massachusetts, to discuss how government and the private sector can come together to make entrepreneurship more accessible for underserved communities.
• Earlier in February, Ranking Member Markey secured funding with the Appropriations Committee for Small Business Development Centers, Women's Business Centers, SCORE Chapters, and Veterans Business Outreach Centers and provisions to rein in the Administration's attempts to eliminate programs that support women, veterans, and underserved entrepreneurs.
• In January, Ranking Member Markey sent a letter to the Consumer Financial Protection Bureau to oppose rule changes that would gut protections against discriminatory lending practices that harm small businesses.
• In December 2025, Ranking Member Markey sent a letter to SBA Administrator Kelly Loeffler expressing significant concerns with the SBA's overly burdensome request and unclear guidance for extensive financial documentation over the holidays, as a part of their sweeping attempts to dismantle the 8(a) Business Development Program.
• In July and December 2025, Ranking Member Markey sent letters to the SBA Administrator demanding answers about the Trump administration's efforts to limit economic opportunity for American entrepreneurs, including immigrants.
• In May 2025, Ranking Member Markey sent a letter to the SBA Administrator rejecting President Trump's FY 2026 budget proposal and calling on SBA to immediately release funding for the entrepreneurial development programs, which include programs like the Women's Business Centers and the Veteran's Business Development Centers that support underserved small business owners.
• In April 2025, Ranking Member Markey introduced the New Start Act of 2025 to establish a five-year pilot program providing grants to support entrepreneurial development training for currently or formerly incarcerated individuals.
• In February 2025, Ranking Member Markey sent letters to the SBA Administrator and Government Accountability Office (GAO) condemning President Trump's war on diversity, equity, inclusion, and accessibility (DEIA) policies and asking how the SBA intends to implement Trump's anti-DEIA executive orders.

Permalink: https://www.sbc.senate.gov/public/index.cfm/2026/7/ranking-member-markey-senator-hirono-reject-trump-s-sba-policy-proposal-that-harms-underserved-small-business-owners-and-entrepreneurs