Comment on FR Doc # 2026-11765
Anonymous AnonymousOpposeIndividual
Summary: The commenter opposes the proposed rule, arguing that the current language is ambiguous and creates uncertainty regarding how social disadvantage and material harm should be proven. They urge the SBA to clarify the requirements and rewrite the regulation to faithfully implement the Small Business Act.
I urge SBA to revise this proposed rule before it becomes final. As drafted, the regulation appears to shift the inquiry from whether an individual has experienced social disadvantage to whether an applicant can identify a policy, practice, or program affecting a broader group and demonstrate resulting material harm. If that is not SBA’s intent, the regulation should be rewritten to eliminate that ambiguity. The current language has produced conflicting interpretations among experienced practitioners, which is strong evidence that applicants and SBA reviewers will also reach inconsistent conclusions. SBA should clearly identify what must be proven, whether identification of a specific policy or practice is required, what evidence is sufficient, and how “material harm” will be evaluated. The final rule should faithfully implement the Small Business Act, not create uncertainty about what Congress intended.