Changes To The 8(a) Program

While the 8(a) program aims to financially assist small disadvantaged businesses, the federal government doesn't want 8(a) entities to be too reliant on program awards they receive throughout their nine-year term. Accordingly, they're required to achieve progressively higher levels of non-8(a) revenue each program year starting with the fifth program year; these required ratios are referred to as “business activity targets.” 

In its final rule, published on April 27th, the SBA responded to the 8(a) community’s requests for additional clarity by specifying what constitutes good faith efforts to meet their business activity targets