Since the COVID-19 Relief Bill passed was enacted on December 27 (including the 8(a) term extension that we discussed earlier), the 15-day window for SBA’s rules on the extension falls on January 11. Here are some thoughts on how we think SBA may fill in the gaps for this important 8(a) term extension, based on our interpretation of the statute and feedback from SBA.
Will the 1-year extension option be effective on January 11 (or within a few days of that date) or some later date? We think the SBA will make the effective date as soon as possible after it releases its regulations on the 8(a) term extension.
If an 8(a) firm is currently under suspension due to the COVID-19 disaster, will the one-year extension under the recent law be added to the firm’s remaining 8(a) term once it comes out of suspension and becomes an active 8(a) participant again? Yes, we believe SBA will add the one-year extension to the remaining amount of the 8(a) term. The rules should allow for a one-year extension that would be added to a firm’s program term as it may have been revised by a COVID-related voluntary suspension. SBA may even automatically add program time for current 8(a) firms unless the firm specifically opts out.
If a firm was in the 8(a) program on September 9, 2020, but graduated after that date, can it still receive the one-year extension under the COVID-19 relief law? Yes, SBA will likely allow a firm that graduated after September 9, 2020 to receive the 8(a) extension and be readmitted into the 8(a) program.
Remember, these are just are predictions on how the rules will play out. Stay tuned to SmallGovCon and we’ll update you as soon as the SBA’s official rules come out.
Questions about this post? Email us or give us a call at 785-200-8919.