Just last week, U.S. Senator Dan Sullivan (R-Alaska) announced that the Small Business Administration (SBA) has formally implemented his long-sought fix to the “bona fide place of business” requirement. This “location restriction” had long made it more difficult for small businesses to compete on an equal playing field for federal construction contracts. Under the policy now, 8(a) firms will no longer need to establish a staffed physical office in a state prior to bidding on a federal contract. Instead, businesses will have 60 days after a contract is awarded to meet any location requirement, allowing more small businesses not only from Alaska, but throughout the nation, to compete for federal contracts.

“Throughout my time in the Senate, I have been a strong supporter of the SBA 8(a) Program, which has provided countless opportunities for Alaskans and Alaska businesses,” Senator Sullivan said. “Many 8(a) firms are proven federal contractors that perform mission-critical work for the federal government, particularly for the Department of Defense, with efficiency and speed. However, for years, the ‘bona fide office’ requirement worked directly against these objectives. By forcing small businesses to open a fully staffed physical office in every state before even bidding on a federal contract, SBA imposed an unworkable and unnecessary barrier to entry. Today, I’m pleased to share that, after years of my team and I relentlessly pushing the SBA, that barrier has finally been eliminated. Under this change, 8(a) firms will no longer be required to establish a physical office in a state before they have a contract in hand. This long-overdue fix opens the door for more of Alaska’s businesses—including disabled-veteran-owned firms, women-owned firms, and Alaska Native Corporations—to compete and deliver results for our federal government and for taxpayers. I very much appreciate Administrator Loeffler for working with me to get this commonsense solution across the finish line.”

“Senator Sullivan has been a tireless champion for Alaska Native Corporations participating in the SBA 8(a) Program, and we’re grateful for his leadership in securing this common-sense fix to the bona fide place of business requirement,” Chugach President Katherine Carlton said. “This change removes an onerous, one-of-a-kind restriction on 8(a) construction firms and will help Native and other 8(a) contractors compete, hire locally, and deliver for federal customers. For decades, ANC participation in the 8(a) Program has been constitutionally grounded, fiscally responsible, and essential to both Federal mission success and Alaska Native self-determination. This is a long-standing policy choice rooted in Federal Indian law and the Federal trust responsibility, and we are dedicated to ensuring the 8(a) Program can continue working as Congress intended: Empowering Alaska Native communities while delivering reliable, cost-effective results for the nation.”

This journey was not made overnight, but came after years of conversations asking for re-consideration beginning with the previous SBA Administrator Guzman, of what was a restrictive and rigid application of policy and rules in federal contracting. Beginning in August of 2021, Senator Sullivan made it his mission to make it easier for small businesses to conduct business at a macro level, finally bringing to an end the use and adherence to the statutory language that the SBA relies on to require a small business to first have a staffed bona fide office within the state of a desired construction project before becoming eligible to compete for a federal government contract. This was extra important given the most recent moratorium/suspension of the “bona fide place of business requirement” was going to expire and not be extended. Finally n November, a commitment from Administrator Loeffler was secured to implement the Sullivan-negotiated change to the “bona fide place of business” requirement. This is huge change for folks wanting to exacerbate their business development potential and breadth.

If you have interest in exploring how this change can impact your bottom line whether you are an existing 8(a) Certification holder, or are looking to make the jump into 8(a) but were waiting for the right time, I always recommend contacting an industry expert such as ez8a. They can guide you from application to approval, or can get you set up to win contracts now more than ever. Don’t wait any longer, this is the right time. And they do not charge for an initial consultation, so what are we waiting for?