WASHINGTON, D.C. — The U.S. Small Business Administration moved on two fronts this month, ordering a sweeping financial review of thousands of federal contractors while also fast-tracking disaster relief for Alaskans hit by Typhoon Halong, signaling an aggressive push to police fraud and deliver aid.
On Dec. 5, the SBA issued formal letters to every participant in the 8(a) Business Development Program, requiring all 4,300 firms to submit extensive financial records covering the past three fiscal years. The demand includes bank statements, financial statements, payroll records, general ledgers, and contracting and subcontracting agreements. Firms that fail to comply by Jan. 5, 2026, risk losing eligibility for the program and could face further investigative or remedial action.
SBA Administrator Kelly Loeffler said the move is part of a broader effort to protect taxpayers and restore integrity to a program intended to support socially and economically disadvantaged businesses. She cited mounting evidence that the 8(a) program has been exploited as a pass-through for fraud and abuse, particularly in recent years.
The document request follows a full-scale audit Loeffler ordered earlier this year after a Justice Department investigation uncovered a $550 million fraud and bribery scheme involving a former federal contracting officer and two 8(a) contractors. The ongoing audit is examining high-dollar and limited-competition contracts awarded over the past 15 years, in coordination with multiple federal agencies. Last month, the SBA suspended numerous executives and contractors amid allegations tied to more than $253 million in contract awards.
The crackdown has also drawn in other agencies. The U.S. Department of the Treasury recently launched its own audit of preference-based contracting across Treasury and its bureaus, reviewing roughly $9 billion in contract value.
Days later, on Dec. 11, the SBA announced progress on a very different front: disaster recovery. The agency said it has approved more than $3 million in federal disaster loans for Alaska residents affected by Typhoon Halong, which struck in October. The approvals come less than two months after Loeffler visited Anchorage to highlight available relief.
SBA officials said the agency has expanded its on-the-ground presence across Alaska, deploying loss verifiers to remote and hard-to-reach areas to conduct damage assessments. Disaster Loan Outreach Centers are operating in Bethel and Anchorage, offering walk-in assistance to homeowners, renters, businesses, and private nonprofits.
The agency is also urging subsistence-reliant households to apply for aid. Damage to boats, fishing gear, all-terrain vehicles, harvest equipment, drying racks, and subsistence camps may qualify for home or personal property loans, a critical lifeline in communities where subsistence living remains central to daily life.
The deadline to apply for physical property damage loans is Dec. 22, 2025, while applications for economic injury loans are due by July 22, 2026. Survivors can apply online through the SBA or seek assistance through the agency’s customer service centers.
Together, the actions reflect an SBA under pressure to both tighten oversight of federal contracting and deliver rapid relief to communities recovering from disaster — a dual mandate playing out simultaneously across the country.
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