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SBA Adjusts Monetary Based Size Standards for Inflation

WASHINGTON –The U.S. Small Business Administration (SBA) issued an interim final rule that will adjust monetary based small business size standards (i.e., receipts, assets, net worth and income) for inflation to allow more small businesses to become eligible for SBA’s financial and federal government procurement assistance programs.  The interim final rule was published in the Federal Register today. 

SBA is adjusting all industry specific monetary based size standards to reflect the inflation that has occurred since the last adjustment for inflation in 2008.  These adjustments are in addition to the recent revisions made to the small business size standards as a result of the SBA’s comprehensive size standards review mandated by the Small Business Jobs Act of 2010. 

SBA is also adjusting its program specific monetary size standards with the exception of the new alternative size standard based on tangible net worth and net income that applies to SBA’s 7(a) and 504 loan programs.  This alternative standard was established under the Small Business Jobs Act and will remain in effect until the SBA establishes a permanent alternative size standard for these programs.

The interim final rule also clarifies that the size standard exception for “Leasing of Building Space to Federal Government by Owners” under footnote 9 in SBA’s table of size standards applies to all industries in North American Industry Classification System (NAICS) Industry Group 5311, Lessors of Real Estate.

These changes are effective July 14, 2014.  SBA estimates that more than 8,400 additional businesses will gain small business status under the adjusted size standards and become eligible for SBA’s financial and federal government procurement programs.  These changes can also possibly lead to more than $150 million to $200 million in additional federal contracts awarded to small businesses and 80 additional loans totaling about $30 million. 

The public may submit comments on this interim final rule to:  www.regulations.gov, identified by the following RIN number: (RIN 3245-AG60). 

An SBA-issued White Paper entitled, “Size Standards Methodology,” which explains how SBA establishes, reviews and modifies its receipts-based and employee-based small business size standards, can be viewed at http://www.sba.gov/size.

For more information about SBA’s revisions to its small business size standards for various industry sectors, click on “What’s New with Size Standards” on SBA’s Web site at http://www.sba.gov/size.

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