SBA Adopts Huge Increases in Some Size Standards SBA has issued final rules dramatically increasing size standards in some industries as part of its long-delayed overhaul of the standards that govern eligibility for small business set-asides and government-backed loans. The first round of changes affects retailers, hotels and restaurants, and many categories of services such as auto repair and dry cleaning. SBA estimates that the increases—some four or five times as large as current standards—would make up to 17,000 additional firms eligible for small business programs. SBA has been promising for years that it would tackle one of the major service categories, NAICS Sector 54, but has not yet proposed changes. The agency has said it would examine a few of the 19 industry sectors each quarter and roll out changes piecemeal. It is the first comprehensive review of size standards in more than 25 years. Most retailers in NAICS sectors 44 and 45 now operate under a $7 million size standard; SBA will at least double that in all categories, and in some cases to raise it by a far greater amount. For example, the standard for office supply and stationery stores jumps from $7 million to $30 million. The list of standards for Sectors 44-45 can be found at http://edocket.access.gpo.gov/2010/2010-24855.htm. SBA adopted increases in 47 of 76 retail categories. Standards will increase in 18 of 48 industries in NAICS sector 81, other services. The standard for NAICS 811213, communication equipment repair and maintenance, rises from $7 million to $10 million. The list of standards for Sector 81 can be found at http://edocket.access.gpo.gov/2010/2010-24860.htm. SBA’s economic analysis showed that standards should be reduced for some industries in sector 81, but the agency declined to do so because it believes reductions would hurt some companies and hinder economic recovery. In sector 72, accommodations and food services, the standard for NAICS 722310, food service contractors, would rise from $20.5 million to $35.5 million. The full list of standards for Sector 72 can be found at http://edocket.access.gpo.gov/2010/2010-24857.htm. The changes were published in the Oct. 6 Federal Register. They take effect Nov. 5. SBA said it based its review on an analysis of each industry’s structure. An explanation of the methodology is at www.sba.gov/size.