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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations and section 869 of the National Defense Authorization Act for Fiscal Year 2021, a small business concern participating the 8a BD program on March 13, 2020, may elect to extend such participation by a period of one year from the end of its program term, regardless of whether it previously elected to suspend participation in the program under the procedures set forth in 124.305h1iii.
1 Unless expressly declined in writing, SBA will extend a Participants program term by one year if the concern was a Participant in the 8a BD program on March 13, 2020, and continued its participation through January 13, 2021.
Declines of such extension must be submitted to: Deputy Associate Administrator, Office of Business Development, Small Business Administration, 409 Third Street SW, Washington, DC 20416, or email to 8aQuestions@sba.gov.
2 Except as set forth in paragraph b2iii of this section any concern that was a Participant in the 8a BD
program on March 13, 2020, but graduated or otherwise left the program before January 13, 2021 may elect to be readmitted to the 8a BD program for the period of time equal to one year from the date of the original expiration of the concerns program term. A
concern seeking to be readmitted to the 8a BD program must notify SBA of its intent to be readmitted no later than March 15, 2021.
Example 1 to paragraph b2
introductory text. Business Concern A
was a Participant in the 8a BD program on September 9, 2020, and its program term expired on November 25, 2020. On January 28, 2021, Business Concern A
notified SBA of its election to be readmitted to the 8a BD program under the process outlined in this paragraph b2. Business Concern A would be eligible to participate in the 8a BD
program until November 25, 2021.
i All requests for readmittance must be submitted to: Associate Administrator, Office of Business Development, Small Business Administration, 409 Third Street SW, Washington, DC 20416, or email to 8aQuestions@sba.gov.
ii As part of a concerns notification to SBA of its intent to be readmitted to the 8a BD program, the concern must certify that it continues to meet the applicable 8a BD program eligibility requirements as set forth in 124.101
through 124.111. SBA may, in its discretion, request information or documentation to assess whether the concern meets the eligibility criteria for readmittance.

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iii Business concerns that were Participants in the 8a BD program on March 13, 2020, but were terminated or early graduated by SBA or elected to voluntarily withdraw or early graduate in lieu of termination are not eligible to extend their program terms.
iv The readmittance of a business concern owned and controlled by a tribe, ANC, NHO, or CDC to the 8a BD
program under this paragraph b2 will be disregarded for purposes of the ownership restrictions applicable to Participants owned by a tribe, ANC, NHO, or CDC as set forth in 124.109c3ii, 124.110e, and 124.111d. The date to commence the two-year waiting period for the tribe, ANC, NHO, or CDC to own another business concern in the 8a BD program with the same primary NAICS code as the readmitted concern will not be readjusted with the firms readmittance.
3. Amend 124.404 by revising the second sentence of paragraph a to read as follows:
124.404 What business development assistance is available to Participants during the two stages of participation in the 8a BD program?

a The developmental stage will last four years, and the transitional stage will last five years, unless the concern has exited the program by one of the means set forth in 124.301 prior to the expiration of its program term or has elected to extend its participation pursuant to 124.2b.

4. Amend 124.509 by revising paragraph b2 and adding an example to paragraph d4 to read as follows:
124.509 What are non-8a business activity targets?

b
2 Non-8a business activity targets.i During their transitional stage of program participation, Participants must meet the following non-8a business activity targets each year:

ii Any Participant that extended its program term pursuant to 124.2b of this chapter must meet the business activity target for year 5 or meet the applicable requirements of paragraph d or e of this section in order to preserve its eligibility for sole source 8a contracts during the extended program period. The applicable business activity target for the extended program period will be the same as that for year 5 of the transitional stage i.e., 50% non-8a revenue.

d
4
Example 3 to paragraph d4: Firm C elected to extend its participation in the 8a BD program as set forth in 124.2 of this chapter. Firm C had $10
million in total revenue during year 5 in the transitional stage year 9 in the program, of which $8.5 million were 8a revenues and $1.5 million were non-8a revenues, and SBA determined that Firm C did not make good faith efforts to meet its non-8a business activity target. In order to be eligible for sole source 8a contracts during year 6
of the transitional stage year 10 in the program, Firm C must demonstrate at its first or second quarterly review that it had received at least $3.5 million in non-8a revenue and new non-8a awards the amount by which it failed to meet the 50% non-8a business activity target for year 5 in the transitional stage. If, at its first two quarterly reviews during year 6 of the transitional stage year 10 in the program, Firm C could not demonstrate that it had received at least $3.5 million in non-8a revenue and new non-8a awards, Firm C would not be eligible for sole source 8a contracts for the remainder of its program term.

Jovita Carranza, Administrator.
FR Doc. 202100602 Filed 11221; 8:45 am BILLING CODE 802603P

TABLE 1 TO PARAGRAPH b2i
Participants year in the transitional stage
1 2
3 4
5

Non-8a business activity targets required minimum non-8a revenue as a percentage of total revenue

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