SBA Revises Small Business Size Standards
Eligibility for U.S. Small Business Administration federal contracting and loan programs will expand to more businesses beginning in May 2022.
In a series of final rules, SBA officials increased 229 revenue-based small business size standards across 16 NAICS sectors.
The increase means businesses recently classified as mid-sized will be able to benefit from the agency’s procurement and loan programs.
SBA officials estimate the change will create contracting opportunities for 844 newly qualified small businesses.
Officials also expect the increase in size classification will extend 96 7(a) and 504 loans worth nearly $45 million.
The sectors were broken down into four rules. Each rule is effective May 2, 2022.
- Agriculture, Forestry, Fishing and Hunting; Mining, Quarrying, and Oil and Gas Extraction; Utilities; Construction
- Transportation and Warehousing; Information; Finance and Insurance; Real Estate and Rental and Leasing
- Education Services; Health Care and Social Assistance; Arts, Entertainment and Recreation; Accommodation and Food Services; Other Services
- Professional, Scientific and Technical Services; Management of Companies and Enterprises; Administrative and Support and Waste Management and Remediation Services
“The publication of these final rules will make 59,000 additional firms eligible for millions of dollars in revenue and business expansion opportunities across a wide range of sectors,” SBA associate administrator for government contracting and business development Bibi Hidalgo said.
“This expansion is equally important for contracting agencies, as a diverse industrial base helps ensure a healthy supply chain and, in turn, supports our nation’s broader economic health.”
Small businesses will not incur direct costs to update their status.
Businesses that newly qualify and are interested in participating in federal contracting must update their SAM profile annually.
The review of the size standards was part of a five-year review required under the Small Business Jobs Act of 2012.
The SBA is expected to issue additional rulemaking on size standards for the manufacturing, wholesale trade, and retail trade sectors in the coming months.
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.