For the first time in 16 years, SBA is proposing an inflation adjustment for the Small Business Innovation Research Program. It proposes to increase the threshold amount for Phase I awards to $150,000, from $100,000, and the amount for Phase II awards to $1 million, from $750,000.

The proposed rule is RIN 3245-AF61. Comments are due Sept. 15.

SBA plans to study the economic impact of its beleaguered HUBZone program. In a Federal Register announcement Aug. 11, the agency said it will measure the program’s effect on employment and household income in the designated areas.

The HUBZone program was designed to create jobs in areas of high unemployment and low income. The Government Accountability Office said SBA had never tried to determine whether the program was achieving its goals.

An independent study for SBA’s Office of Advocacy concluded, “The [economic] impact in two-thirds of all HUBZones is nil.” (SAA, 5/30)

SBA’s Office of Advocacy warned that small businesses may face significant costs unless there are changes in a proposed rule that imposing new standards under the Americans With Disabilities Act.

The proposed rule would require new efforts to remove barriers that impede access for people with disabilities, but it provides a safe harbor for small businesses: they are deemed to be in compliance if they spend 1% of annual gross revenues on barrier removal.

In a letter to the Justice Department, Advocacy said many small firms believe the 1% requirement “will become the minimum a small business must spend every year on barrier removal to avoid legal liability.” Advocacy urged Justice to add a clause specifying that a small company could meet its obligations even if it spent less than 1% of revenue.