Elon Musk's $9 billion neurotechnology company self-certified as a "small disadvantaged business" [FOTF!]

Caleb Ecarma, “Musk Watch”, 7/17/25

On April 24, Elon Musk's $9 billion neurotechnology company falsely self-certified as a "small disadvantaged business" (SDB) on a federal filing, a designation that qualifies the company for preferential treatment as part of a racial and ethnic diversity initiative.

The SDB designation can also only be legally claimed by companies owned by "economically disadvantaged individuals."

Neuralink, which is developing implantable brain-computer interfaces, registered with the government as an SDB while Musk leveraged his position at the White House to cut federal funding for diversity, equity, and inclusion programs.

Excerpt from a Neuralink federal government filing, dated April 24, 2025.

The SDB designation is clearly defined by the Small Business Administration and in federal regulations. A SDB must be "unconditionally and directly" majority-owned (51%) by a member of a socially and economically disadvantaged group, meaning a demographic "subjected to racial or ethnic prejudice or cultural bias."

Even if a business clears that hurdle, not all are eligible for the designation. To be considered an SDB, the company must also be majority-owned by an "economically disadvantaged individual." According to the Code of Federal Regulations:

Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged.

Federal regulations state that individuals with a net worth exceeding $850,000, excluding the value of their primary residence, are not "economically disadvantaged individuals."

Musk, the owner of Neuralink, has an estimated net worth of $404 billion. A South Africa-born white man raised in the Anglican Church, Musk is also not a part of any recognized disadvantaged ethnic or racial group.

As a private company, Neuralink’s exact ownership structure is opaque. But in a September 2018 letter to the Securities and Exchange Commission, Neuralink lawyer Roel Campos wrote, "Neuralink is a private Delaware Corporation with its head offices at 3180 18th St, San Francisco, CA, 94110, in which Mr. Musk has a majority ownership stake." Neuralink has since reincorporated in Nevada. "Never incorporate your company in the state of Delaware," Musk said in January 2024, a few days after Neuralink left the state of Delaware.

With the federal government awarding $50 billion to SDBs annually, carrying the SDB designation is a significant advantage for companies seeking government contracts. SDBs also receive increased visibility on federal databases, including the Small Business Administration's Dynamic Small Business Search (DSBS). Neuralink currently appears on the DSBS as a "Self-Certified Small Disadvantaged Business."

Since 2017, Neuralink has made the SDB business claim in all 11 of its filings on SAM.gov, the federal government's contracting database. Many of those filings were signed by Jared Birchall, Musk's top fixer and Neuralink's CEO. The SDB designation is also visible on the main page of the company's SAM.gov profile.