The 8(a) Business Development Program administered by the U.S. Small Business Administration (SBA) is designed to help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities by providing them with certain competitive advantages in government contracting for a nine year period.

The provisions of the National Defense Authorization Act (NDAA) for Fiscal Year 2021, as passed by both the U.S. House of Representatives and the U.S. Senate this week, includes a one year extension for participants in the 8(a) BD Program to take into account the impacts of the COVID-19 pandemic. While President Trump has threatened to veto the legislation for reasons unrelated to this provision, the votes approving the passage of the NDAA in the House (335 to 78) and in the Senate (84-13) were by more than sufficient margins to override a Presidential veto.

Section 869 of this year’s NDAA provides participants who were admitted to the 8(a) BD Program on or before September 9, 2020 the ability to elect to extend their participation “by a period of 1 year regardless of whether such concern previously elected to suspend participation in such program.” So those 8(a) BD Program participants opting for the extension will be allowed to participate for a total of ten years. To ensure this important benefit is quickly implemented, the SBA is required to issue the regulations necessary for the one-year extension within 15 days after the legislation officially becomes law. In this case, it appears likely that additional votes on the legislation will be necessary for Congress to override a President Trump veto before the law is formally enacted.

For more information about the 2021 NDAA, please contact MWL Partner Peter Fish.