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SBA to Raise Some Size Standards

SBA has proposed increasing size standards for 22 of 42 industries in NAICS sector 48-49, transportation and warehousing.

Many of the proposed changes are dramatic; standards would at least double in industries now operating under a $7 million standard. SBA did not propose lower standards in any category, saying that could hurt economic growth.

The proposed changes affect transportation-related businesses in sector 48. No changes were proposed in sector 49, which covers warehousing and storage. SBA did not review 15 industries that operate under employee-based standards; those will be reviewed later. (See the list of proposed standards in the next story .)

The agency estimates the changes would make only 1,200 additional companies eligible for small business status.

The latest proposal is part of SBA’s continuing review of all size standards. The agency is examining one or two industry sectors at a time and proposing changes piecemeal.

In setting size standards, SBA says it gives equal weight to each of five primary factors: average firm size in the industry; average assets, as a proxy for startup costs and entry barriers; what proportion of the industry’s receipts are concentrated in the four largest companies; distribution of firms by size; and small business share of federal contract dollars in the industry.

The proposed rule is RIN 3245-AG08. Comments are due July 12.


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