Overview

• Neuralink’s April 24 filing with the Small Business Administration self-certified the company as a Small Disadvantaged Business despite majority ownership by billionaire Elon Musk.
• SBA regulations require SDB firms to be at least 51% owned by individuals who are socially and economically disadvantaged with net worths under $850,000, a threshold far below Musk’s wealth.
• The SBA does not vet self-certifications, leaving Neuralink’s disadvantaged status unverified in government contracting databases.
• Although Neuralink has not received federal contracts or funding under its SDB designation, the status could grant preferential access to procurement opportunities.
• Legal experts warn that misrepresentation of SDB eligibility has led to Department of Justice prosecutions and fines in similar cases.