SBA To Move on Size Standards, 8(a) Overhaul SBA plans to move forward this summer with its long-delayed overhaul of size standards. The agency said it will also propose broad changes in the 8(a) program. The tentative timetable was published May 11 in SBA’s semiannual Regulatory Agenda. Size Standards Nearly two-and-a-half years after it announced a comprehensive review of size standards, SBA says it will begin the formal rulemaking process in July. The agency plans to release notices of proposed rulemaking in three industry sectors: NAICS sector 44-45, retail trade; NAICS sector 72, accommodations and food services; and NAICS sector 81, other services. Sector 81 covers most types of repair services, including computer and communications equipment, and personal services such as barber shops and dry cleaners. In January 2007 SBA said it had begun a review of all 19 industry sectors (the sector is the first two digits of the NAICS code) and would roll out changes in a few sectors every quarter. But the initiative stalled and no changes were ever proposed. Many of the size standards have not been changed in years, except for inflation adjustments. SBA officials acknowledged that their analysis of some industries suggested the need for huge increases in standards, but there was debate within the agency over whether a size standard should be tripled or quadrupled. Any sudden large increase in standards would make many more companies eligible for small business status, bringing increased competition for set-aside dollars that could damage some smaller firms. 8(a) Program SBA said a number of changes in 8(a) rules will be outlined in a notice of proposed rulemaking next month, but gave few details. Among the biggest issues on the table is the status of the parity rule for set-asides. SBA has ordered equal treatment in set-asides for 8(a), HUBZone and service-disabled veteran-owned businesses, but the Government Accountability Office has ruled that parity violates the law. GAO says HUBZone firms are entitled to top priority. (See story, p. 1.) SBA officials have said they are also considering increasing the net-worth limit for 8(a) business owners. Currently an owner’s worth can be no more than $250,000 when his company enters the program, and no more than $750,000 for as long as it remains an 8(a) firm. Industry groups have said the ceilings are far too low. Women’s Set-Aside SBA tentatively plans to take another swing at the long-delayed women’s contracting program by issuing a new notice of proposed rulemaking in October. Congress has prohibited the agency from proceeding with the Bush administration’s proposed women’s contracting program, which would make set-asides available to woman-owned firms in just four small industries. Women’s business advocates, including many members of Congress, have called for a broader set-aside program.