SBA Suspends Place-of-Business Rule for 8(a) Businesses

WASHINGTON, D.C. – The Small Business Administration has suspended its rule requiring that businesses in its 8(a) development program to have a bona fide place of business.

The moratorium applies to all construction contracts offered to the 8(a) program through 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, in a statement. “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.”

The program is aimed at providing more government contracts to socially and economically disadvantaged people and businesses. Enrolling in the 8(a) program allows businesses to compete for set-aside and sole-source contracts, to access as business opportunity specialist to help with federal contracts, to form joint venture through the SBA’s mentor-protege program, and to receive management and technical assistance.

For the purposes of 8(a) construction procurements, bona fide place of business means a location where the company has an office with at least one full-time employee within a geographical boundary. It does not apply to construction trailers and temporary construction sites.

More information on the 8(a) program is available on the SBA’s webpage HERE or by contacting the agency’s regional office.

Published by The Business Journal, Youngstown, Ohio.