If you hold an 8(a), HUBZone, or SDVOSB certification for federal contracting, you need to pay attention. The past 18 months have brought the most significant changes to small business federal contracting programs in decades.
Some of these changes create new opportunities. Others introduce new compliance burdens and risks. And if you're not aware of what's different, you could find yourself losing your certification—or missing out on contracts you should be winning.
I've reviewed the new regulations, executive orders, and SBA guidance to bring you a comprehensive overview of what's changed and what you need to do about it.
In January 2025, the Trump administration issued executive orders that fundamentally shifted federal contracting policy. The most immediate effect: the SBA reset all federal small business contracting goals to their statutory minimums.
Here's what the current targets look like:
- Small Business: 23% of all federal contracting dollars (unchanged)
- Small Disadvantaged Business (8(a)): 5% minimum (previously agencies often aimed higher)
- Women-Owned Small Business: 5% minimum
- Service-Disabled Veteran-Owned Small Business: 5% minimum (increased from 3% by NDAA FY2024)
- HUBZone: 3% minimum (historically the hardest goal to meet)
This doesn't mean less money is flowing to small businesses—the federal government awards hundreds of billions in contracts annually. But it does mean that agencies may feel less pressure to exceed minimums, particularly for programs that have faced political scrutiny.
8(a) Program: Under Intense ScrutinyIf you're in the 8(a) Business Development Program, you're facing the most significant changes. The program has been hit harder than any other set-aside in 2025.
The Full-Program Audit:
On December 5, 2025, the SBA mandated that all current 8(a) participants provide extensive financial documentation covering the last three full fiscal years. This isn't a random audit—it's a full-program review affecting every single 8(a) firm.
Required documentation includes:
- Bank statements
- Financial statements
- General ledgers
- Payroll registers
- Contracting and subcontracting agreements
- Employment records
The deadline is January 19, 2026. Firms that fail to comply risk removal from the 8(a) program and potential further investigative or remedial actions.
FAR Changes: New Flexibility (and Competition)The Federal Acquisition Regulation (FAR) updates, particularly the Part 19 overhaul issued on September 26, 2025, introduce significant changes to how agencies can structure small business contracts.
Key change: Agencies can now move follow-on requirements out of 8(a) and into other socioeconomic categories—HUBZone, SDVOSB, or WOSB—without obtaining SBA's formal permission.
What this means for you:
- If you're an 8(a) firm, don't assume that follow-on contracts will automatically stay in the 8(a) program
- If you have multiple certifications (e.g., 8(a) plus SDVOSB), you may see more opportunities under your non-8(a) designations
- Competition within socioeconomic categories may increase as contracting officers have more flexibility
HUBZone firms received some welcome news in the form of streamlined requirements—but also face a critical deadline.
New benefits:
- Certification requirement moved to offer time (not annual recertification)
- Residency requirement reduced to 90 days (down from 180)
- Minimum work hours reduced to 10 hours per week
- 12-month grace period for 35% residency compliance
- Triennial recertification replaces annual requirements
Critical deadline: Redesignated areas from the 2023 map update will expire on July 1, 2026. If your HUBZone status depends on an area designation that's expiring, you need to act now.
Check your area status at the SBA's HUBZone map: maps.sba.gov/hubzone/
SDVOSB: A Bright SpotService-Disabled Veteran-Owned Small Businesses are in an unusually strong position right now. Here's why:
Increased goal: The statutory goal for SDVOSB contracting was increased to 5% (from 3%) by the National Defense Authorization Act for FY2024. This higher target creates more pressure on agencies to find SDVOSB contractors.
VA exceeding expectations: The Department of Veterans Affairs awarded $10.2 billion (23% of total prime contract dollars) to SDVOSBs in their most recent fiscal year—far exceeding both the 5% statutory goal and VA's internal goal of 15%. Over 2,300 SDVOSB firms received awards.
SBA certification streamlining: The transfer of SDVOSB certification from the VA's Center for Verification and Evaluation to SBA (completed January 1, 2023) has generally made the process more consistent and efficient.
If you're a service-disabled veteran who hasn't yet obtained SDVOSB certification, now is an excellent time to pursue it.
2026 Compliance ChecklistRegardless of which certification you hold, here's what you should be doing now:
- Verify your SAM.gov registration is current (check and update quarterly)
- Confirm your SBA certification status and next recertification date
- If 8(a): Gather all required documentation for the January 19, 2026 deadline
- If HUBZone: Check if your area designation is expiring July 1, 2026
- Review your NAICS codes and size standards (some may have changed)
- Update your capability statement to emphasize multiple certifications if applicable
- Identify prime contractors who might need your certification for Tier 2 compliance
Based on the late-2025 signals, here's what small business federal contractors should expect in 2026:
Increased oversight everywhere. The full-program 8(a) audit signals a broader trend toward stricter compliance verification. Keep your documentation in order regardless of which program you're in.
Cyber compliance becomes critical. The government is tightening risk gates, particularly around cybersecurity. If you handle controlled unclassified information (CUI), make sure you're progressing toward CMMC compliance.
Focus on execution. The government is favoring suppliers who operate like disciplined, low-friction vendors. On-time delivery, quality performance, and easy payment processing matter more than ever.
FAR modernization continues. Expect ongoing updates to federal acquisition regulations as part of the broader "Revolutionary Overhaul" initiative. Stay connected to industry groups and procurement news sources.
Resources for Staying CurrentFederal contracting rules can change quickly. Here are the sources I monitor:
- SBA.gov: Official program information and policy updates
- Federal News Network: Breaking news on acquisition policy
- SAM.gov: Your registration hub—check it regularly
- Acquisition.gov: Current FAR text and updates
- Federal Register: Proposed and final rules affecting small business programs
The rules of the game are changing. But for small businesses willing to adapt and stay compliant, federal contracting remains one of the largest and most reliable revenue opportunities in the American economy.
