On December 5, 2025, the Small Business Administration (SBA) issued a program-wide data call (Data Call) to all 8(a) Business Development Program (8(a) Program) participants seeking three years of financial and contractual records. The Data Call was designed to identify fraud, waste, and abuse in the 8(a) Program. Further to that stated goal, following the response deadline of January 19, 2026, SBA swiftly moved to take adverse action against 8(a) firms it deems non-compliant with the Data Call obligations. 8(a) firms that received a Notice of Suspension or believe they may be affected should act quickly to address compliance issues and, if necessary, submit informal or formal appeals to protect their program participation.
On January 21, 2026, SBA issued Notices of Suspension to some 8(a) firms based on the companies’ alleged “failure to submit all required documentation in response” to the Data Call. Although SBA did not release further details about the suspensions, it appears the suspension notices were issued to firms that either failed to submit their Data Call responses on or before the January 19, 2026, deadline or submitted incomplete responses. At least some firms that submitted complete Data Call responses only one day late—on January 20, 2026, and before any suspension notices were issued—often due to errors in the government-operated MySBA Certifications portal, nonetheless received suspension notices, indicating that SBA is taking a strict approach to alleged non-compliance with the filing deadline.
Firms subject to 8(a) suspension are not permitted to receive new competitive or sole-source 8(a) awards. However, firms are required to complete existing 8(a) contracts, and federal agencies may exercise options on those contracts, even while a firm is suspended (unless otherwise prohibited by statute or regulation).
Suspended companies with a good reason for their alleged non-compliance with the January 19, 2026, submission deadline should consider sending an informal request to SBA to lift the suspension, explaining the reason for the delay, and demonstrating that the company continues to operate as a responsible contractor at no risk to the government.
If informal channels are unsuccessful, a suspended 8(a) company may—and should—appeal SBA’s decision within 45 days of the date of the Notice of Suspension to SBA’s Office of Hearings and Appeals. This process can be time consuming, and appeals decisions can be delayed for months or even years.
PilieroMazza’s 8(a) Audit Response Task Force can assist with informal and formal challenges to Notices of Suspension related to the Data Call. Please contact Meghan Leemon or Matt Feinberg, the authors of this client alert, for assistance.
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