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

Release Date: 
Thursday, August 26, 2021
Release Number: 
21-37
Contact: 
stephen.collier@sba.gov

DENVER - 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 U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov