Are You A Small Business?

Business

by Roby Brock ([email protected]) September 27, 2012 10:54 pm 153 views 

The U.S. Small Business Administration has been busy finalizing rules that may alter the standards for defining a small business.

The SBA issued three final rules in the Federal Register, effective Oct. 24, 2012, increasing size standards for firms in three North American Industry Classification System (NAICS) Sectors:

  • Real Estate and Rental and Leasing
  • Educational Services
  • Health Care and Social Assistance

Size standards define the maximum size a firm can be and still be considered a small business.

The SBA said the new size standards could enable more businesses in these sectors to obtain or retain small business status. It could also give federal agencies a larger pool of small businesses from which to choose for their procurement programs. Additionally, the standards could also make more small businesses eligible for SBA’s loan programs.

SBA increased size standards for businesses in 21 industries in the Real Estate and Rental and Leasing Sector.  More than 13,000 additional firms will qualify as small under these new size standards and become eligible for SBA loan and federal procurement programs.

SBA also increased size standards for 9 industries for firms in the Educational Services Sector.  More than 1,500 additional businesses will qualify as small under the new size standards and become eligible for SBA loan and federal procurement programs.

Size standards for 28 industries were also increased for firms in the Health Care and Social Assistance Sector. More than 4,100 additional firms will qualify as small under these new size standards and become eligible for SBA loan and federal procurement programs.

To review the three rules and public comments, go to www.regulations.gov.  Each has a separate Regulation Identifier Number (RIN) number:

  • Real Estate and Rental and Leasing – (RIN 3245-AG28)
  • Educational Services – (RIN 3245-AG29)
  • Health Care and Social Assistance – (RIN 3245‑AG30)

The SBA issued a white paper entitled “Size Standards Methodology” which explains how SBA establishes, reviews and modifies its receipts-based and employee-based small business size standards. The white paper is available here.