New SBA Regs Threaten Small Business M&A

New Small Business Administration rules set to take effect on January 17, 2026, have introduced a world of hurt to the clients I help every day: the owners of small business set-aside companies.

As the Office of Management and Budget’s Jason Miller recently explained, “each year, tens of thousands of small businesses serve as contractors for the federal government, providing a variety of goods and services.” These owners run the gamut from women to service-disabled veterans, from husband and wife teams to immigrants bringing a new technology or service offering.

Now their world has been turned upside down because the SBA has put in motion a set of rules that will significantly decrease the value of many of these small business companies who hold set-aside contracts.