A bona fide place of business (BFPOB) means a location where a participant regularly maintains an office that employs at least one full-time individual.
Earlier this week, the U.S. Small Business Administration (SBA) announced extension of its 8(a) Business Development Bona Fide Place of Business (BFPOB) Requirement Moratorium through Sept. 30, 2024.
The moratorium was created in 2021 as a response to the COVID-19 pandemic and remote work conditions in the marketplace allowing participants in the SBA’s 8(a) Business Development Program to forgo the requirement of having an established physical presence in a particular location to be awarded any construction contract through the 8(a) Program.
According to the SBA, this modification to the 8(a) Business Development Program has made it easier for small and disadvantaged businesses to be eligible for 8(a) construction contract awards, and an extension on the moratorium is intended to continue creating opportunities and leveling the playing field for American entrepreneurs.
For purposes of 8(a) construction procurements, a bona fide place of business means a location where a participant regularly maintains an office that employs at least one full-time individual within the appropriate geographical boundary. The term does not include construction trailers or other temporary construction sites.
Read SBA’s press release on the Extension of the Moratorium on 8(a) Eligibility Requirements here.