WASHINGTON – Today, the U.S. Small Business Administration announced that it would be reinstating a rule to require government contractors to return to work. Effective Oct. 1, participants in SBA’s 8(a) Business Development Program will once again be required to have an actual, physical office within the geographic area in which they are bidding on federal construction contracts. The temporary COVID-era suspension of this rule ends Sept. 30.
“The Covid-19 emergency has long been over and America is open for business – which means the SBA is requiring 8(a) contractors to return to work if they want to bid on taxpayer-funded federal construction contracts,” said SBA Administrator Kelly Loeffler. “Those that seek to build in America should have boots on the ground in America – enabling them to create jobs, complete projects, and better serve U.S. taxpayers.”
During the Covid-19 pandemic, SBA temporarily suspended the bona fide place of business rule for small business 8(a) construction contractors impacted by widespread economic shutdowns. Under the applicable rule, 8(a) construction contractors must have a legitimate office that is within their project’s geographical boundary, have at least one full-time employee physically present, and ensure that their bona fide place of business is not a portable trailer, temporary unit, or virtual address.
