SBA Proposes More Increases in Small Biz Size Standards

Change would raise revenue limits for government contracting in 20 industries.

For the second time in two months the U.S. Small Business Administration is proposing changes to the definition of “small,” for small businesses seeking government contracting. The changes are part of an ongoing review of size standards.

The latest proposed changes would increase the revenue limits for small businesses in 29 industries in one sub-industry in two broad categories of businesses, ranging from real estate and property management to formal wear and costume rental. The changes are based on annual gross revenues (averaged over three years) and delineate how large a business can be and still qualify as small for federal government programs.

Last month, the SBA proposed changes to the size definition of small businesses in 52 industries in two broad categories of businesses, ranging from travel agencies and movie production to waste management.

The adjustments are part of an ongoing comprehensive review of all size standards as required under the Small Business Jobs Act of 2010. The SBA is evaluating all industries in these sectors that have revenue-based size standards to determine whether the existing size standards should be adjusted.  The last overall review of size standards occurred more than 25 years ago.

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.  The SBA estimates that an additional 14,500 small businesses could qualify for SBA financial assistance under the increased limits.

The government is accepting public comments on the proposed changes at www.regulations.gov and all comments will be posted to that site for public review.

For more information about SBA’s revisions to its small business size standards, click on “What’s New with Size Standards” at www.sba.gov/size.

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About Smart Companies Thinking Bigger®

Kelly Scanlon is the owner and publisher of Thinking Bigger Business Media. She recently finished a term on the national board of directors of the National Association of Women Business Owners, and was the national chair from 2010-2011. An advocate for small business owners, Kelly sits on numerous boards and committees to advocate on behalf of small business owners. She has won several awards for her advocacy. Among them are the 2011 United Nations NGO Positive Peace Award on behalf of Kansas City area small business owners, the U.S. Small Business Administration's Region VII Women's Business Champion of the Year in 2009, and the Women in Business Advocate of the Year from the State of Kansas in 2006. In 2002, she won the SBA's Region VII Small Business Journalist of the Year Award (Missouri, Iowa, Nebraska, Kansas). Whatever your business stage—aspiring, startup, established, mature—Thinking Bigger Business Media has the resources you need to grow to the next level. We are a resource organization dedicated to providing the strategic, "how-to" information small business owners need to become more productive and more profitable. We also provide information that helps owners connect with resources within the business community that can help them grow. We deliver that information through a variety of media products and other channels easily accessible to business owners.
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