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Inflation Boost For Size Standards

SBA is increasing all dollar-based size standards by 8.7% to adjust for inflation.

The final rule, effective Aug. 18, is the second inflation adjustment in less than three years. Standards were raised by the same percentage in December 2005.

The current $6.5 million standard that applies to many services will go up to $7 million in annual receipts. The $23 million standard for computer systems design services increases to $25 million. The $31 million standard for building construction goes to $33.5 million.

SBA estimates an additional 10,400 companies will gain small business status as a result of the change.

No changes are being made in standards based on employment.

The agency said the inflation adjustment does not affect its ongoing review of each individual size standard. The first changes under that review are due later this year, with others to follow over the next two years.

In calculating inflation, SBA uses the chain-type price index for the gross domestic product, as reported by the Commerce Department’s Bureau of Economic Analysis.

The complete list of new standards is available here.


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