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SBA's 8(a) Set-Aside Program Survives Challenge

by Judah Lifschitz, Diane A. Grossi & Susan K. Blitch

Summary

On April 2, 1996, in C.S. McCrosson Co. v. Cook, the District of Columbia Federal District Court denied McCrosson's request for a preliminary injunction barring the taking of bids for a construction project under the SBA's 8(a) program. The 8(a) program sets aside bidding solely for small firms that are deemed to be socially or economically disadvantaged. Members of certain racial groups are presumed to be disadvantaged.

Although the Court held that McCrosson had standing to challenge the program, it denied the preliminary injunction because McCrosson would not suffer irreparable injury, nor could McCrosson show a likelihood of prevailing on the merits. This ruling comes at a time when affirmative action programs such as the 8(a) program are coming under increasing attack due to the recent Adarand decision. In Adarand, the Supreme Court applied strict scrutiny, holding that the program must be narrowly tailored to serve a compelling state interest.

Judah Lifschitz, Esquire, Diane A. Grossi, Esquire and Susan K. Blitch, Esquire, are with the law firm of Shapiro, Lifschitz and Schram, P.C., Washington, D.C.


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