SBA Reinstates Rule to Return Federal Contractors to Work

WASHINGTON, June 17, 2025 (GLOBE NEWSWIRE) — 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.

Firms participating in the 8(a) program can email questions to their local servicing district office or visit 8(a) Business Development Program.

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About the 8(a) Business Development Program 
The SBA certifies small businesses considered to be socially and economically disadvantaged under its nine-year 8(a) Business Development Program. The 8(a) program helps these firms develop and grow their businesses through one-to-one counseling, training workshops and management and technical guidance. It also provides access to government contracting opportunities, allowing them to become solid competitors in the federal marketplace. 

About the U.S. Small Business Administration 
The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.  

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