SBA Proposes New Size Standards for Services SBA is proposing only a tiny increase in size standards for most IT services, raising the standard to $25.5 million in annual receipts from the current $25 million. SBA proposes to raise the standards for 36 professional, scientific and technical services categories in NAICS sector 54. (See table in the top left corner of the home page.) Architect/engineering and related services would see a huge increase to $19.5 million in annual receipts, from the current $4.5 million. Standards for most consulting services would double to $14 million. The insignificant increase for IT services is sure to disappoint many in the industry. One industry group has proposed raising that standard to $50 million. SBA said it bases its size standards on a detailed analysis of the structure of each industry, including the small business share of the federal market. The agency’s methodology for calculating standards runs 60 pages. SBA invited public comment on the methodology. The agency estimates that the proposed changes would make about 9,450 new companies eligible for federal small business programs, approximately 1.2% of the total number of firms in the affected industries. SBA’s analysis indicated that standards should be lowered in some industries. But the agency decided not to lower any standards because it might cost jobs. Comments on the proposed changes are due May 16. SBA is currently in the midst of the first comprehensive review of its size standards in more than two decades. Agency officials have said the next revisions will be in NAICS sectors 22, utilities; 51, information, including telecommunications and Web hosting; and 56, administrative services and remediation services. The 2010 Small Business Jobs Act requires that all standards be reviewed every five years.