Public Inspection in Federal Register of Regulations Adding One Year to SBA’s 8(a) Program-Scheduled to be Published Tomorrow

By: Christine V Williams on 01/12/2021

SBA is amending § 124.2 of its regulations to incorporate the optional program term extension for small business concerns participating in the 8(a) BD program on March 13, 2020. Specifically, revised § 124.2 provides that for a firm participating in the 8(a) BD program as of March 13, 2020 and through [Likely tomorrow when published], SBA will extend its program term by one year unless the concern declines such extension. A firm that was participating in the 8(a) BD program as of March 13, 2020, but has since graduated or otherwise left the program before [INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER-Likely published tomorrow] must notify SBA of its intent to be readmitted for a period of one year from the date it completed its program term. Any such notification must be received by SBA no later than [INSERT DATE 60 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER Likely tomorrow]. In addition, a firm seeking to be readmitted must certify that it continues to meet the applicable eligibility requirements as set forth in §§ 124.101 through 124.111.
SBA is also revising § 124.2 to clarify that any period of extension under the Act
will be added to a Participant’s transitional stage of participation in the 8(a) BD program.

Commentary: The National Defense Authorization Act recognized that small businesses were being hit hard by the pandemic.  It directed the SBA to extend the particiaption period from 9 years to 10.  SBA, by these regulations, is doing so.  As to the Business Activitiy Targets (BAT) or mix between 8(a) and non-8(a) work, SBA is regulating that the BAT for year nine is extended, so an 8(a) firm must perform 50% of its work that is not 8(a) work.  Here is the link to the Federal Register, which you may copy in your browser, for the full regulations, which should be formally published tomorrow: