Rep. Nydia Velázquez criticizes the SBA for stripping USAID’s SBA 8(a) contracting power over one bribery case. With no proof of wider issues, she warns this move could hurt small businesses relying on federal contracts and demands transparency from the agency.
Politics Enters the SBA 8(a) Program Shakeup
The Small Business Administration is catching heat after pulling the U.S. Agency for International Development’s (USAID) authority to award SBA 8(a) contracts. This follows a single bribery case involving a former contracting officer. Four people have already pleaded guilty, but Rep. Nydia Velázquez, the top Democrat on the House Small Business Committee, isn’t buying the broad reaction. She sees this move as an overreach that could hurt the very businesses the program was meant to help.
The Justice Department got its convictions. The system did its job. So why take the entire agency’s contract authority away? Velázquez says this is like burning the house down because of one faulty outlet.
One Case Shouldn’t Sink the Whole Program
Velázquez isn’t just questioning the decision—she’s accusing the SBA of using this isolated case to cast a shadow over the whole SBA 8(a) program. And she’s not alone in thinking this feels extreme. The change came at the worst time—right at the end of the government’s fiscal year, when many small firms depend on these contracts to hit their revenue goals.
The timing could choke off funding streams just when small contractors are trying to close deals. This isn’t just poor planning—it looks like a gut punch to businesses that play by the rules.
No Clear Reason from SBA
Right now, there’s no clear answer from the SBA. There’s an ongoing audit, but nothing yet shows a bigger pattern of abuse or failure in the SBA 8(a) system. That’s why Velázquez is demanding answers. She wants the SBA to explain what they saw that made them yank USAID’s authority. Until then, it looks like they’re making a major policy shift based on one bad actor.
This isn’t just about policy—it’s about real businesses losing real opportunities because of a decision that feels rushed and unjustified.
