Moratorium on Bona Fide Place of Business Requirements for the 8(a) Business Development Program

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Moratorium on Bona Fide Place of Business Requirements for the 8(a) BD program

WASHINGTON – The U.S. Small Business Administration today announced 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 August 25, 2021, and applies to all 8(a) construction contracts offered to the 8(a) Program between August 25, 2021, and September 30, 2022.

“The SBA is committed to finding innovative ways to assist small businesses, particularly small disadvantaged businesses that have been historically underserved,” said 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.”

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.

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

About the 8(a) Business Development Program 

The SBA certifies small businesses considered to be socially and economically disadvantaged under its nine-year 8(a) Business Development Program. The 8(a) program helps these firms develop and grow their businesses through one-to-one counseling, training workshops, management, and technical guidance. It also provides access to government contracting opportunities, allowing them to become solid competitors in the federal marketplace. 

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