SBA Proposed Revenue Size Standards and Changes
The Federal Register today published its Notice of Proposed Rule Making regarding the Revenue Based Size Standard for SBA. The official proposed changes will be published tomorrow with comments due 60 after that publication. SBA is required to review the size standards every five years. It’s interesting that SBA can characterize or make a basis for characterization a “dominant” firm in any industry that is a small business firm. In doing so, SBA generally examines the industry’s market share of firms at the proposed or revised size standard as well as the distribution of firms by size. Market share and size distribution may indicate whether a firm can exercise a major controlling influence on a national basis in an industry where a significant number of business concerns are engaged. If a contemplated size standard is found to include a dominant firm, SBA will consider a lower size standard to exclude the dominant firm from being defined as small.
The charts starting at page 32 demonstrate the application of the methodology applied. Some NAICS Codes Revenue size standards, decrease, others increase, and others stay the same. Page 146 highlights some of the impacts of increases and decreases. There are options that the SBA considered as well as the initial regulatory flexibility analysis and its 5 analytical factors. A link to the report is provided here: https://outlooklaw.com/s/Size-Standards-Revenue-SBA-eams.pdf