Washington, D.C. — On Aug. 25, the U.S. Small Business Administration announced a moratorium on the requirement for participants in the 8(a) Business Development Program to establish a bona fide place of business in a specific geographic area to receive a construction contract through 8(a), due to ongoing pandemic related challenges. The moratorium applies to all contracts offered between Aug. 25, 2021 and Sept. 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.