SBA Increases its Size Standards

By: Christine V. Williams on 01/26/2016

On January 25, 2016, the SBA increased its size standards. It did so in both revenue and employee based size standards. Below is the summary from the Federal Register as well as a few links.

This rule finalizes, without change, the U.S. Small Business Administration’s (SBA or Agency) June 12, 2014 interim final rule that adjusted monetary small business size standards (i.e., receipts, assets, net worth, and net income) for inflation that has occurred since the last inflation adjustment in 2008. Specifically, the interim final rule increased by 8.73 percent all industry specific monetary small business size standards (except the $750,000 receipts based size standard for agricultural enterprises established by the Small Business Act). The interim final rule also increased by the same rate the tangible net worth and net income based alternative size standard for the Small Business Investment Company (SBIC) Program and receipts based size standards for Sales of Government Property (Other Than Manufacturing) and Stockpile Purchases. This final rule adopts those increases, without change.

Link for more information.

Employee Based Size Standard
The U.S. Small Business Administration (SBA or Agency) is increasing 47 small business size standards based on a concern’s number of employees. These increases affect 46 industries in North American Industry Classification System (NAICS) Sector 42, Wholesale Trade, and one industry in NAICS Sector 44-45, Retail Trade. SBA retains the size standards for the remaining industries in those sectors and the 500-employee size standard for the Federal Government’s procurement of supplies under the non-manufacturer rule. As part of its comprehensive size standards review under the Small Business Jobs Act of 2010, SBA reviewed all 71 industries in NAICS Sector 42, as well as the two industries in NAICS Sector 44-45, that have employee based size standards. The revisions adopted in this rule primarily affect eligibility for SBA’s financial assistance programs, and have no impact on Federal procurement programs.

Link for more information.