U.S. FEDRegulation
SBA removes affirmative action and disparate-impact provisions from Title VI rules
The Small Business Administration published a final rule rescinding provisions of its Title VI regulations (13 CFR part 112) that authorized or required affirmative action by SBA program applicants and recipients. The rule also removes references to employment practices and drops disparate-impact coverage, stating the regulations prohibit only intentional discrimination. SBA cited a December 2025 DOJ Title VI revision and Executive Order 14281. The rule took effect September 29, 2026.
Key points
- Rescinds the full text of 13 CFR 112.3(b)(3), which authorized and sometimes required race-based affirmative action.Federal RegisterFederal Register
- Technically corrects 13 CFR 112.4 and rescinds its third sentence plus 13 CFR 112.7(a) and (d) examples on employment practices.Federal Register
- Follows DOJ's Dec. 10, 2025 Title VI revisions (90 FR 57141) and conforms to EO 14281 against disparate-impact liability.Federal Register
- SBA says it will not pursue Title VI disparate-impact liability against its federal funding recipients.Federal Register
- Effective and published Sept. 29, 2026; RIN 3245-AI72; 8 pages at 91 FR 61295.Federal Register
Sources2 articles across 1 outlet
Filed under
RegulationU.S.SBA Final Rule: Removing Constitutional Concerns From SBA Programs (13 CFR Part 112) (2026)Civil rightsComplianceRegulatoryFor practitionersFor governance