WASHINGTON, D.C. — The U.S. Small Business Administration (SBA) recently announced the reinstatement of its bona fide place of business rule for participants in the 8(a) Business Development Program. Effective October 1, 2025, small business contractors bidding on federal construction projects will be required to maintain a physical office within the geographic area of their project, marking the end of a temporary suspension introduced during the COVID-19 pandemic.
The rule mandates that 8(a) construction contractors establish a legitimate office at their project’s location with at least one full-time employee physically present. Virtual addresses, temporary units, and portable trailers will not meet the requirement. The suspension of this rule, which began during the pandemic to address economic disruptions, will formally expire on September 30.
SBA Administrator Kelly Loeffler underscored the importance of this move, stating, “The COVID-19 emergency has long been over, and America is open for business. 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.”
The reinstatement is expected to enhance localized project oversight and job creation while returning to pre-pandemic standards for federal construction contracting. The SBA emphasizes that the rule aligns with its goal of ensuring contractors live and work in the communities they serve, fostering stronger ties between contractors and their project locations.
This reinstatement may prompt adjustments among qualifying businesses as they prepare to comply by October’s deadline, particularly those relying on virtual or remote operations during the pandemic-era suspension.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.