Cherokee Federal & the SBA 8(a) Program

Serving the Nation.
Building a Nation.

When the federal government partners with Cherokee Federal, our experts get the mission done — while 37 cents of every dollar earned flows directly back to 470,000+ Cherokee citizens.

$364MReturned to Cherokee Nation
over the past decade
4,400+Employees across
50 states & 20 countries
37%Net income reinvested
monthly to tribal fund
16Active Tribal 8(a) LLCs —
fully compliant & self-performing
Background & Legal Foundation

What Is the SBA 8(a) Program?

The U.S. Small Business Administration's 8(a) Business Development Program was established by Congress in 1978 to help eligible small businesses compete in the federal marketplace. For Tribal enterprises, Congress specifically expanded the program in 1988, grounding participation in the government-to-government trust relationship between the United States and sovereign Tribal Nations.

Tribal participation in 8(a) is not a diversity initiative or a racial preference. It is a political and legal classification — repeatedly affirmed by the Supreme Court and rooted in federal statute, including the landmark ruling in Morton v. Mancari.

The United States has a unique, constitutionally grounded trust responsibility to federally recognized tribes. The 8(a) Program, as it applies to tribal enterprises, is a modern expression of that sovereign-to-sovereign relationship — not a social program, and not a workaround.

Tribal participation in the 8(a) Program is a political and legal classification, not a racial one. The distinction matters — legally, constitutionally, and as a matter of history.
1969
Cherokee Nation Establishes Its First Business

Cherokee Nation Businesses launches with a mission to build a sustainable economic engine that reduces long-term reliance on federal appropriations.

1978
Program Established

Congress creates the 8(a) Business Development Program to help disadvantaged small businesses access federal contracting opportunities.

1988
Tribal Inclusion

Congress explicitly includes Alaska Native Corporations, Indian Tribes, and Native Hawaiian Organizations, grounding participation in federal trust responsibility.

Today
A Proven Record

Cherokee Federal operates 38 LLCs, serves more than 60 federal agencies, employs over 4,400 professionals, and has returned $364 million to tribal programs over the past decade.

Cherokee Nation headquarters
How the Model Works

Every Contract Serves a Larger Mission.

Cherokee Federal operates 35+ LLCs as part of Cherokee Nation Businesses — an independent, board-governed company wholly owned by the Cherokee Nation. By tribal law, 37 percent of net income from government contracting is returned monthly to the Cherokee Nation General Fund, creating an unrestricted pool of funds that benefits the entire tribal community.

General Fund programs supported
HealthcareHousingEducationCareer DevelopmentLaw EnforcementLanguage PreservationIndian Child WelfareInfrastructureNatural ResourcesVeteran ProgramsPublic HealthCommunity Programs
Community Impact
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1
Federal Agency Awards Contract

Cherokee Federal wins a contract through one of more than 20 vehicles, including full and open competitive environments.

2
Cherokee Federal Delivers the Mission

Teams self-perform more than 75% of contracted work across logistics, health, cybersecurity, intelligence, IT, and more.

3
Revenue Flows to Cherokee Nation Businesses

Combined profits from the LLCs are pooled within Cherokee Nation Businesses, the independent parent company.

4
37% Returns to the General Fund

Monthly distributions to the Cherokee Nation General Fund are unrestricted, supporting critical programs for 470,000+ citizens.

5
Communities Are Strengthened

Remaining funds are reinvested into CNB-owned businesses, creating jobs and fueling the next generation of growth.

Our Compliance Posture

Compliant. Transparent. Documentable.

Cherokee Federal participates in the 8(a) Program with full rigor. We welcomed the SBA's December 2025 data call, responded comprehensively ahead of deadline, and maintain high confidence in our data, controls, and compliance posture. There are no specific findings against Cherokee Federal. Our work is not under investigation for wrongdoing.
01

Majority Self-Performance

An internal review of all 16 active Tribal 8(a) LLCs confirms more than 75% of total contract work is self-performed by entity-owned subsidiaries — well above the required threshold.

02

Full SBA Cooperation

When the SBA issued data requests to all 4,300 program participants in December 2025, Cherokee Federal submitted contract, subcontract, payroll, vendor, and financial data for all 16 entities before the deadline.

03

Not Pass-Through Entities

Our 8(a) LLCs are established to deliver capability, not act as intermediaries. Subcontracting is used deliberately when mission requirements demand specialty small businesses — standard, regulated practice.

04

Labor-Based Performance Rules

The 8(a) "51% rule" is calculated on labor costs, not total contract value. Materials, software, travel, and third-party expenses are excluded. Cherokee Federal tracks this precisely at the contract level.

05

Not Under Investigation

Recent scrutiny reflects broad, program-wide attention. There are no specific findings against Cherokee Federal. Oversight is a built-in feature of the program — and we welcome it.

06

Proactive, Not Defensive

We advocate for targeted enforcement against proven misconduct — not blanket approaches that penalize compliant firms and disrupt federal missions Americans depend on daily.

Headshot

"The 8(a) program has been a vital tool in addressing longstanding gaps through performance, accountability, and merit. Our eligibility is not a loophole or a workaround. It is a modern extension of a sovereign-to-sovereign relationship grounded in the U.S. Constitution and Federal statute."

Chuck Hoskin Jr., Principal Chief, Cherokee Nation  —  Senate Committee on Indian Affairs, 2026

Real Outcomes for Real People

The numbers behind our work aren't abstract.

They represent jobs created, health centers built, language programs funded, and communities strengthened across Northeast Oklahoma and beyond.

$364MReturned to Cherokee Nation
in the past decade
11,000+Jobs created within
Cherokee Nation since 2000
18,000+Citizens with upgraded
water & sewer systems
470,000+Cherokee citizens supported
by tribal programs
$40M+Every 3 years for housing
construction & rehabilitation
$12M+Annually for Cherokee
language preservation
$3.14BAnnual economic impact
on Northeast Oklahoma
Healthcare
/ Clinic
Workforce
/ Professional
“

Thirty-seven cents of every dollar we earn goes back to the Cherokee Nation. That's not a policy. It's a purpose. When agencies choose Cherokee Federal, they're not just buying a capability. They're investing in a community.

Chuck Garrett  |  CEO, Cherokee Nation Businesses

Setting the Record Straight

Much of the current debate stems from misunderstandings about how federal contracting actually works.

Claim
Fact
8(a) is a DEI program or race-based contracting preference.
Tribal participation in the 8(a) Program is expressly authorized by Congress and rooted in the federal government's political and legal relationship with sovereign Tribal Nations. The program has been repeatedly upheld by the Supreme Court, including Morton v. Mancari. This is a sovereign-to-sovereign relationship, not a racial classification.
8(a) firms are "pass-through" entities collecting fees while subcontracting all the work.
Cherokee Federal entities self-perform more than 75% of work on 8(a) contracts — well above the required threshold. Many critics fail to realize 8(a) firms are subject to stricter self-performance limits than most large contractors.
Sole-source 8(a) awards are uncompetitive "no-bid" handouts with no oversight.
Sole-source contracting is a government-wide acquisition method. Within 8(a), sole-source awards are capped by statute, require written justification, and are subject to approval thresholds and audit. The largest federal contractors outside 8(a) receive billions in sole-source awards annually — often with far fewer restrictions.
The 8(a) Program is rife with fraud and abuse and should be eliminated or paused.
Enforcement actions involve a small fraction of participants, and those actions demonstrate that oversight is working — not failing. Eliminating the program would penalize compliant firms, disrupt federal missions, and increase reliance on large multinational vendors with fewer restrictions.
Tribal 8(a) contractors should employ only Tribal members.
The 8(a) Program is a business development program, not a hiring mandate. Federal contracts require specialized skills, clearances, and geographic flexibility. Tribal ownership is maintained through governance structures, while revenues fund workforce development and economic opportunity for all Cherokee citizens.
Frequently Asked Questions

Common questions about the 8(a) Program and Cherokee Federal's participation.

Have more questions?

Cherokee Federal's government relations and compliance teams are available to discuss the program in detail. Reach out through Cherokee Federal's website for direct contact.

Cherokee Nation community Cherokee Nation family Cherokee Nation youth

Is the 8(a) Program constitutional and legal for Tribal entities?

Yes. Tribal participation is grounded in the federal government's political and legal trust relationship with sovereign Tribal Nations. This distinction has been repeatedly affirmed by the U.S. Supreme Court. Congress explicitly authorized Tribal inclusion in 1988 through federal statute.

Does Cherokee Federal actually perform the contracted work?

Yes. An internal review across all 16 active Tribal 8(a) LLCs shows that more than 75% of total contract work is self-performed by entity-owned subsidiaries. Cherokee Federal's entities are built to deliver capability, not to function as intermediaries.

What happened with the SBA's December 2025 data call?

The SBA issued data requests to all 4,300 program participants on December 5, 2025. Cherokee Federal compiled contract, subcontract, payroll, vendor, and financial data for all active 8(a) entities and submitted ahead of the deadline. We have high confidence in the accuracy of our data and compliance posture.

Is Cherokee Federal under investigation?

No. Recent scrutiny reflects broad, program-wide attention in response to concerns about a limited number of bad actors. There are no specific findings against Cherokee Federal. The SBA data call was sent to all participants, and we responded fully and transparently.

What would happen if the 8(a) Program were eliminated, paused, or substantially changed?

It would penalize compliant firms, disrupt critical federal missions, and increase reliance on large multinational vendors with fewer restrictions. It would reduce competition, undermine tribal economic self-determination, and shift federal dollars away from communities that have spent decades building this capacity. The appropriate response to isolated misconduct is targeted enforcement — not wholesale elimination.

How do Cherokee Federal's profits benefit the Cherokee Nation?

Under tribal law, 37% of net income is distributed monthly to the Cherokee Nation General Fund. Over the past decade, this has totaled $364 million — funding healthcare, housing, education, language preservation, law enforcement, infrastructure, and veteran programs for more than 470,000 citizens.

Partnering with Cherokee Federal Means Something More.

Every mission we accomplish together advances America and helps build a stronger, more self-sufficient Cherokee Nation. That's a partnership with purpose.

Meet Cherokee Federal