August 21, 2023

SBA: Extension of Moratorium on 8(a) Eligibility Requirement Announced

A Bona Fide Place of Business moratorium will increase the opportunity for small and disadvantaged businesses to expand and grow their businesses

Today, on her first day of a multi-city Alaska trip, U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman announced the extension of the 8(a) Business Development Bona Fide Place of Business (BFPOB) Requirement Moratorium through September 30, 2024. The moratorium was created in 2021 as a response to the COVID-19 pandemic and remote work conditions in the marketplace so participants in the SBA’s 8(a) Business Development Program could forgo the requirement of having an established physical presence in a particular location to be awarded any construction contract through the 8(a) Program. 

Based on the feedback received from the Alaska 8(a) community and congressional stakeholders, this modification to the 8(a) Business Development Program has made it easier for small and disadvantaged businesses to be eligible for 8(a) construction contract awards. This modification continues to be well received by other federal agencies seeking to increase construction procurement opportunities with small and disadvantaged businesses across the country, but especially in rural and remote areas like Alaska with population densities lower than the national average.

“Small businesses have had to pivot and adapt during the pandemic and continue to focus on more efficiently operating their businesses while expanding to capture more revenues, which is why this moratorium remains critical in today’s marketplace,” said Administrator Guzman. “With this extension, the SBA under the Biden-Harris Administration is again demonstrating its commitment to creating opportunity and leveling the playing field for American entrepreneurs.” 

During the moratorium, any 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 BFPOB 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.

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

This post was originally published here.