SBA Extends Bona Fide Office Moratorium for Additional Year

In a policy with an effective date of June 30, 2022, SBA has extended the Bona Fide Office Moratorium for 8(a) firms until September 30, 2023.  The first moratorium was set to expire on September 30, 2022.  The moratorium or pause on regulations is necessary because the regulations were changed so that sole source awards, a distinct feature of the 8(a) Program, would join competitively bid contract regulations in requiring a brick and mortar office within the geographic location of the work prior to bid or performance of work–including at least one full time employee.  The moratoriums put a temporary hold on those impactful regulations.

 Notably, the now paused regulations require more than a construction trailer and the small business must incur costs of having a full time employee in the area (but not a typical construction trailer) prior to the work being awarded.  Many small businesses cannot afford the expense of establishing brick and mortar offices with employee(s) to just try to win work and often small businesses are able to do the administrative work normally performed in a brick and mortar building (like many administrative offices) off site remotely.

SBA has made indications that this is the last moratorium for the bona fide office requirements.  Here is the policy.  Final Policy Notice Extending BFPOB Moratorium PDF