SBA Places Moratorium on Requirements for the 8(a) Business Development Program

On Aug 27, 2021

The U.S. Small Business Administration placed a moratorium on the requirement that participants in SBA’s 8(a) Business Development Program must establish a bona fide place of business in a specific geographic area in order to be awarded any construction contract through the 8(a) Program due to the ongoing challenges of COVID-19.  The moratorium is effective as of Aug. 25, 2021, and applies to all 8(a) construction contracts offered to the 8(a) Program between Aug. 25 2021 and Sept. 30, 2022.

“SBA’s 8(a) program is perfect to help small, disadvantaged firms gain access to federal government contracting opportunities. The new moratorium on bona fide place of business requirements will allow greater opportunities for underserved small firms seeking contracting contracts and expand the Garden State economy,” said SBA New Jersey District Director Al Titone.

During the moratorium, any 8(a) Program participant seeking an 8(a) construction contract (either on a sole source or competitive basis) will not be required to have or establish a bona fide place of business in any specific geographic location.

For purposes of 8(a) construction procurements, a bona fide place of business means a location where a participant regularly maintains an office that employs at least one full-time individual within the appropriate geographical boundary. The term does not include construction trailers or other temporary construction sites.

The SBA believes this modification to the 8(a) Program will make it easier for small, disadvantaged businesses to be eligible to be awarded 8(a) construction contracts.

“The SBA is committed to finding innovative ways to assist small businesses, particularly small disadvantaged businesses that have been historically underserved,” added Bibi Hidalgo, associate administrator for SBA’s Office of Government Contracting and Business Development. “This change to the SBA’s 8(a) program — our flagship contracting program born out of the Civil Rights movement — will help small businesses continue to drive our economic recovery and position themselves at the forefront of our nation’s reimagined economy.”

Firms participating in the 8(a) Program can email questions to their local servicing District Office or visit: 8(a) Business Development Program.

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