Congressman Begich Introduces Bipartisan Bill to Level the Playing Field for 8(a) Small Businesses

WASHINGTON, D.C. – May 20, 2025 – This week, Congressman Nick Begich (R-AK) introduced legislation to repeal an outdated and burdensome requirement within the Small Business Administration’s 8(a) program. H.R. 3485 eliminates the "Bona Fide Place of Business" provision, which restricts the award of certain construction subcontracts under 8(a) contracts to firms located in the same county or state as the project. This rule disproportionately impacts small businesses operating in rural or remote areas.

“The current rule places an unnecessary burden on the very small businesses the 8(a) program was designed to equip,” said Congressman Begich. “In Alaska, where infrastructure is limited especially in rural areas, this requirement makes it harder for businesses to compete and contribute to federally funded construction projects. This legislation cuts red tape and increases competition while supporting small businesses in every corner of the country.”

“The Bona Fide Place of Business requirement within the SBA’s 8(a) Program is an unnecessary administrative and financial burden to all small businesses in the federal marketplace, especially those that have just entered the program,” said Jon Panamaroff and Haven Harris, Co-Chairs of the Native American Contractors Association Board of Directors. “This legislation removes the red tape for 8(a) certified small businesses and allows the federal government to procure construction projects more efficiently and in the most cost-effective way possible.”

This legislation repeals Paragraph (11) of Section 8(a) of the Small Business Act (15 U.S.C. 637(a)), which imposes a unique geographic restriction not applied to other federal contractors. This commonsense reform is supported by a broad coalition of Alaska Native corporations and small business advocates. 

The Senate version of this bill, S.991, is led by Senator Dan Sullivan (R-AK). 

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