WASHINGTON – Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s more than 33 million small businesses, announced that the moratorium on the 8(a) Business Development Program’s Bona Fide Place of Business (BFPOB) requirement will be extended through Sept. 30, 2025, for small disadvantaged businesses (SDBs).
The moratorium was enacted 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) Program could forgo the requirement of having an established physical presence in a particular location to be awarded any construction contract through the Program. Based on feedback from 8(a) construction firms, the SBA is once again extending the moratorium due to workforce shortages, cultural shifts in the workplace, and trends favoring remote work opportunities, making it increasingly difficult for small businesses to recruit and retain office-based employees.
“The SBA is committed to meeting businesses where they are and adding flexibility and simplicity whenever feasible to improve access to the agency’s products and services,” said Administrator Guzman. “We recognize that small businesses continue to pivot and adapt to changing workforce trends in the marketplace. As we make progress on achieving President Biden’s goal of awarding 15% of federal contracts to small disadvantaged businesses by 2025, extending the moratorium on the Bona Fide Place of Business requirement will enable SDBs to continue focusing on expanding their business and capturing more revenue.”
“The Bona Fide Place of Business requirement is an especially significant barrier to new entrants into the SBA 8(a) Program. The Native American Contractors Association applauds the SBA for extending this moratorium so that all small businesses can better compete for contracting opportunities,” said Katherine Carlton, Co-Chair of the Native American Contractors Association.
