Today, Senator Dan Sullivan celebrates the U.S. Small Business Administration’s (SBA) reform of the Business Development program provided in SBA policy 8(a). Sen. Sullivan has been fighting for this reform since October 2020.
SBA’s Business Development program is a “federal contracting and training program for experienced small business owners who are socially and economically disadvantaged.” The program benefits include sole-source contracts, one-on-one business development assistance, mentorship, networking, and free training from SBA’s Empower to Grow program.
Under the old policy, small businesses were required to have a “bona fide place of business,” meaning a staffed physical location. According to Sen. Sullivan: “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. 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… [and] imposed an unworkable and unnecessary barrier to entry.”
Chugach President Katherine Carlton applauded Sullivan’s efforts: “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.”
The reform enables more Alaskan small businesses to enter the federal marketplace. The top industries that use the 8(a) program are construction, engineering, information technology, maintenance and operations, logistics and transportation, healthcare, and environmental services.