Scrutiny Surrounds SBA Programs for Native Businesses

Lawmakers call for review of federal contracting programs for Native Hawaiian companies amid allegations of abuse

Feb. 7, 2026 at 4:31am

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U.S. Rep. Ed Case has formally requested the Inspector General for the U.S. Small Business Association to review 'reported abuses' in the federal contracting programs for Native Hawaiian companies. The Native Hawaiian Organizations Association is urging the Trump administration to distinguish between 'isolated allegations' and the success of the SBA's 8(a) Business Development Program in expanding economic opportunity for native-run businesses.

Why it matters

The 8(a) program is designed to help level the playing field for small businesses owned by Native entities, including Native Hawaiian organizations, tribes, and Alaska Native corporations, by providing them access to no-bid federal contracts. However, recent allegations of abuse and criminal investigations have raised concerns about the program's oversight and transparency, threatening to undermine public trust.

The details

In December 2025, the SBA sent letters to all 4,300 8(a) participants requiring them to produce financial records as part of an audit to 'root out fraud, waste, and abuse.' Firms that failed to comply by January 5, 2026 could lose their eligibility. This comes after the suicide of Christopher Mailani Hookaamomi Dawson, the founder of Hawaiian Native Corp., amid federal criminal allegations that he embezzled millions from the company to fund his lavish lifestyle.

  • On December 5, 2025, the SBA sent letters to all 4,300 8(a) participants requiring them to produce financial records.
  • On January 2, 2026, Rep. Ed Case formally requested the Inspector General to review 'reported abuses' in the 8(a) contracting programs for Native Hawaiian companies.
  • In November 2023, federal prosecutors detailed how Dawson and his enablers allegedly used money meant for charity to buy homes and pay for his luxurious lifestyle.
  • Dawson killed himself on December 19, 2024, 18 months after federal agents raided Hawaiian Native Corp.'s offices in June 2023.

The players

Ed Case

A U.S. Representative who has formally requested an Inspector General review of the 8(a) contracting programs for Native Hawaiian companies.

Native Hawaiian Organizations Association (NHOA)

An organization that is urging the Trump administration to distinguish between 'isolated allegations' and the success of the SBA's 8(a) program in expanding economic opportunity for native-run businesses.

Christopher Mailani Hookaamomi Dawson

The late founder of Hawaiian Native Corp. who was accused of embezzling millions from the company to fund his lavish lifestyle.

U.S. Small Business Administration (SBA)

The federal agency that administers the 8(a) Business Development Program, which provides contracting opportunities for small businesses owned by Native entities.

Mazie Hirono

A U.S. Senator who has expressed concerns about the SBA's sudden review of the 8(a) program, calling it part of the Trump administration's 'war on DEI and diverse communities.'

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What they’re saying

“Native Hawaiian Organizations participate in the 8(a) program pursuant to clear congressional authorization and are subject to eligibility requirements, annual reporting, and ongoing compliance reviews. NHOA supports efforts to increase clarity around how the 8(a) program operates, including the statutory requirement for NHOs to reinvest capital into their communities.”

— Native Hawaiian Organizations Association

“While I strongly support federal efforts to help the indigenous peoples of our nation, recent news reports have highlighted potential concerns with the contracting preferences provided to at least one NHO. Such allegations and publicly acknowledged criminal investigations undermine Americans' trust in the 8(a) Program and the goal of ensuring our nation's indigenous peoples have a fair opportunity to participate in federal contracting opportunities.”

— Ed Case, U.S. Representative

“It appears the Trump regime has set its sights on the 8(a) program as part of its war on DEI and diverse communities. The SBA has a duty to conduct rigorous, evidence-based oversight of all programs it administers, including the 8(a) program, which is why I've expressed concerns about the nature of this sudden review and whether the SBA has the resources and manpower to adequately conduct such a review in a timely manner.”

— Mazie Hirono, U.S. Senator

What’s next

The Inspector General's review will examine the total number and names of Native 8(a) organizations, assess the effectiveness and transparency of participants' give-back efforts, evaluate the adequacy of community benefits plans, and provide a timeline for issuing new regulations on community benefits plans and give-back requirements.

The takeaway

This scrutiny of the SBA's 8(a) program for Native businesses highlights the need for increased transparency and accountability to maintain public trust, while also recognizing the program's important role in supporting economic self-determination and prosperity in Native communities that have historically faced barriers to opportunity.