SBA News Advisory as New 8(a) Program Rules Take Effect

WASHINGTON — Today, the U.S. Small Business Administration (SBA) announced new guidance relating to  recent reforms of the 8(a) Business Development Program for individually-owned firms. In support of President Donald J. Trump’s agenda to expand the Arsenal of Freedom here at home, and the Smaller War Plants Commission’s effort to strengthen critical supply chains within the defense industrial base, SBA will prioritize processing for 8(a) applicants in defense-critical industries. Additionally, the agency will reinstate merit-based “potential for success” reviews for prospective participants consistent with the statue and purpose of the program.

Please visit the SBA.gov website to read the full news release, SBA Issues Guidance to Prioritize Defense-Critical Firms as New 8(a) Program Rules Take Effect.

Today’s guidance further refines the program to ensure it delivers measurable results for American taxpayers while advancing key strategic priorities. It supports the Smaller War Plants Commission, a recent partnership between the SBA and the U.S. Department of War to expand American military capacity, capability, and resilience by investing in small manufacturers, who comprise 70% of the defense industrial base. Moving forward, the agency will prioritize reviewing and processing 8(a) applications for small businesses operating in the following defense-critical NAICS codes:

• NAICS 332992: Small Arms Ammunition Manufacturing
• NAICS 332993: Ammunition (except Small Arms) Manufacturing
• NAICS 336414: Guided Missile and Space Vehicle Manufacturing
• NAICS 336413: Other Aircraft Parts and Auxiliary Equipment Manufacturing
• NAICS 334511: Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
• NAICS 334419: Other Electronic Component Manufacturing
• NAICS 331110: Iron and Steel Mills and Ferroalloy Manufacturing
• NAICS 332710: Machine Shops
• NAICS 332999: All Other Miscellaneous Fabricated Metal Product Manufacturing
• NAICS 336611: Ship Building and Repairing

On September 10th, when the final rule becomes effective, pending individually-owned 8(a) applications will be temporarily returned via the “Return to Business” system to allow applicants to align with the new standards and submit updated financial records. Applicants will have 45 calendar days to complete their updates and resubmit their applications for review.