SBA adjusts size standards

      The Small Business Administration has issued a proposed rule to increase size standards in 150 industries--including manufacturing--in which size is measured by the number of employees.

      SBA also intends to leave 282 such industry size standards as is. Comments are due by June 27.

      The proposal to retain the current 500-employee size standard for federal procurement of supplies under the nonmanufacturer rule, and the proposal not to change the 150-employee size standard for IT value-added resellers, are raising some concerns.

      “SBA intends to keep the 500-employee size standard for nonmanufacturers,” but SBA’s analysis indicated it should be increased to 550 employees, Jon Williams, partner with PilieroMazza PLLC, wrote in a client alert on April 28.

      Not changing the standard is “questionable,” Williams wrote. While SBA says it wants to maintain continuity and familiarity with the 500-employee size standard, which it claims works well for most firms, those reasons “should not be the guide.”

      Williams added that small business resellers, with very slim profit margins, also should review SBA’s analysis and consider commenting on the plans.

      The SBA reviewed size standards in these NAICS sectors:

• Mining, Quarrying, Oil & Gas Extraction;
• Utilities;
• Manufacturing;
• Transportation and Warehousing;
• Information;
• Finance and Insurance;
• Professional, Scientific & Technical Services; and
• Administrative and Support, Waste Management and Remediation Services.

More information:
Proposed rule: https://bit.ly/38YGmlc
Client alert: https://bit.ly/39MPutB

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