As previously reported in this blog post, Section 869 of the National Defense Authorization Act (NDAA) for Fiscal Year 2021 requires the U.S. Small Business Administration to issue regulations to implement a one year extension for participants in the 8(a) Business Development Program to take into account the impacts of the COVID-19 pandemic. After a congressional override of a veto from President Trump, the 2021 NDAA was enacted into law on January 1, 2021.

The “interim final rule” just released by the SBA today includes the following details of this one year extension available to certain 8(a) BD program participants:

• Certain 8(a) Firms are Eligible for an Automatic Extension. For those 8(a) BD program participants that were active from March 13, 2020 (the date of the Executive Order classifying the COVID-19 pandemic as a national emergency) through January 13, 2021, their participation periods will be automatically extended for one year beyond their previously identified graduation date.
• Certain Graduated 8(a) Firms are Eligible for Re-admission. Those 8(a) firms that were active participants on March 13, 2020 but graduated from the program before January 13, 2021 are eligible to request re-admission to the program. Such requests need to be submitted to the SBA on or before March 13, 2021. If SBA confirms the firm still meets the requirements for admission, the firm will be re-admitted to the 8(a) BD program for an additional year beyond the date of their prior graduation. For example, if an 8(a) firm that was active on March 13, 2020 but graduated on December 15, 2020 and requests re-admission to the 8(a) BD program, it will be eligible to re-admitted with a new graduation date of December 15, 2021.
• Certain Firms Are Not Eligible for the One Year Extension. Firms that were terminated, early graduated, or voluntarily withdrew from the 8(a) BD program between March 13, 2020 and January 13, 2021 are not eligible for re-admission to the program.
  
  

While the “interim final rule” has an immediate effective date of January 13, 2021, SBA is inviting public comments on the rule for the next 60 days. Upon the expiration of the comment period, SBA will consider the comments received before adopting a final version of the rule at a later date.

For more information, please contact MWL Partner Peter Fish.