Market Overview

SBA Proposes Small Business Size Standard Revisions in Three Industrial Sectors; Change Targeted at Increasing Eligibility for Contracting and Loan Programs

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Washington, Nov. 16, 2020 (GLOBE NEWSWIRE) -- The U.S. Small Business Administration is seeking public comments on a proposed rule that would revise the small business size standards for businesses in three North American Industrial Classification System (NAICS) sectors to increase small business eligibility for SBA's loan and contracting programs. 

Comments may be submitted on this proposed rule on or before Jan. 12, 2021 at www.regulations.gov, using the following RIN number: RIN 3245-AG91. You may also comment by mail to Khem R. Sharma, Chief, Size Standards Division, 409 3rd Street SW, Mail Code 6530, Washington, D.C., 20416. 

The NAICS sectors reviewed in the proposed rule are: Professional, Scientific and Technical Services; Management of Companies and Enterprises; and Administrative and Support and Waste Management and Remediation Services.  SBA proposes to increase size standards for 46 industries in those sectors. The following table includes the number of industries reviewed and the number of industries with proposed increases in size standards by NAICS sector.

NAICS Sector Sector Name No. of Industries Reviewed No. of Industries with Increases
54 Professional, Scientific and Technical Services 48 27
55 Management of Companies and Enterprises 2 2
56 Administrative and Support and Waste Management and Remediation Services 44 17
Total   94 46

SBA estimates that about 2,600 additional firms in these three sectors will become eligible for SBA's programs under the revised size standards, if adopted.

The proposed rule is part of a five-year comprehensive review of small business size standards, as required under the Small Business Jobs Act of 2010.  The proposed revisions reflect changes in the industry and federal marketplace conditions and SBA's policy position under the current economic situation due to the COVID-19 pandemic.  In response to the pandemic, SBA is retaining current size standards where data suggests that size standards should be lowered.

As part of the ongoing review of all size standards, SBA considers the structural characteristics of individual industries, including average firm size, the degree of competition, and federal government contracting trends. This ensures that small business size standards reflect current economic conditions in those industries. The proposed revisions to the size standards in these sectors will enable more small businesses to retain their small business status, provide federal agencies a larger pool of small businesses to choose from for small business procurement opportunities, and help eligible small businesses benefit from SBA's loan programs.

An SBA-issued White Paper entitled, "SBA'S 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, visit "announcements about updating size standards" at http://www.sba.gov/size.

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About the U.S. Small Business Administration

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit https://www.sba.gov.


Tiffani Clements
United States Small Business Administration
Tiffani.Clements@sba.gov
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