SBA-Proposed Size Standard Increases for Information & Admin Services Industries Reflect Changes
Tuesday, October 18, 2011
Posted by: Matthew Boyle
Proposed rules published today
for comment in The Federal
Register by the U.S. Small Business Administration would adjust
the size definition of small businesses in 52 industries in two broad
categories of businesses, ranging from travel agencies and movie production to
The proposed adjustments to size
standards in 15 industries in Sector 51 of the North American Industry
Classification System (NAICS), "Information,” and in 37 industries in Sector
56, "Administrative and Support, Waste Management and Remediation Services,”
reflect changes in marketplace conditions in those sectors.
In both sectors, the proposed
changes are based on annual gross revenues. The standards delineate how large a
business can be and still qualify as small for federal government programs. The
dollar limits refer to annual revenues averaged over three years.
As part of the ongoing
comprehensive review of all size standards that began in 2007, the SBA
evaluated all industries in these sectors that have revenue-based size
standards to determine whether the existing size standards should be adjusted.
Before 2007, the last overall review of size standards occurred more than 25
years ago. Under provisions in the Small Business Jobs Act of 2010, SBA will
continue its comprehensive review of all size standards for several years.
The proposed changes take into
account the structural characteristics within individual industries, including
average firm size, degree of competition, and federal government contracting
trends. This ensures that size definitions reflect current economic conditions
within those industries.
The upward revisions would allow
some small businesses that are close to exceeding their current size standards
to retain small business eligibility under the proposed higher size standards,
and give federal agencies a larger selection of small businesses to choose from
for small business procurement opportunities. They also would allow more small
businesses to qualify for SBA financial assistance. SBA estimates that up to
500 more firms in Sector 51 and 2,700 more companies in Sector 56 will qualify
for SBA assistance and other federal programs if the proposed revisions are
Interested parties can submit
comments on these proposed rules on or before Dec. 12, 2011. The SBA recommends
that comments be submitted online at www.regulations.gov
or mailed to Khem R. Sharma, Chief, Size Standards Division, 409 3rd St., SW,
Mail Code 6530, Washington, D.C. 20416. The SBA will post all comments to www.regulations.gov for public review.
The SBA does not accept comments submitted by email.
To see the industries that would
be affected by the proposed rule, click here.