Elon Musk's Neuralink filed as 'disadvantaged business' before being valued at $9 billion

The tech CEO's Neuralink was valued by investors at $9 billion shortly after it described itself as a small business in a federal filing.

Elon Musk’s health tech company Neuralink labeled itself a “small disadvantaged business” in a federal filing with the U.S. Small Business Administration, shortly before a financing round valued the company at $9 billion.

According to the SBA’s website, a designation of SDB means a company is at least 51% owned and controlled by one or more “disadvantaged” persons who must be “socially disadvantaged and economically disadvantaged.” An SDB designation can also help a business “gain preferential access to federal procurement opportunities,” the SBA website says.

The Department of Justice has previously fined companies for making false claims about their SDB status.