WASHINGTON — Proposed rules published recently for comment in The Federal Register by the U.S. Small Business Administration would adjust the size definition of small businesses in 29 industries in one sub-industry in two broad categories of businesses, ranging from real estate and property management to colleges, junior colleges and universities.
The proposed adjustments to size standards in 20 industries and one sub-industry in Sector 53 of the North American Industry Classification System (NAICS), “Real Estate and Rental and Leasing,” and in nine industries in Sector 61, “Educational 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 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.
For more information, visit www.sba.gov/size and click on “What’s New with Size Standards.”