Size Standards Are Adjusted For Inflation For the second time in four years, SBA has increased dollar-based size standards to keep up with inflation. Under an interim rule issued Dec. 6, all size standards currently set at $6 million will go up to $6.5 million. Other standards will increase by $1 million to $2.5 million. Size standards measured by employment, such as most manufacturing categories, are not affected. (See table, page 5.) SBA estimated that about 11,600 businesses will become eligible for federal small business programs as a result of the changes. The new standards were effective Dec. 6 for loan programs and will take effect Jan. 5 for federal procurements. The agency estimated that up to $400 million in federal contracts could be awarded to firms that will gain small-business status under the rule. SBA said the increases reflect an 8.7% growth in the urban consumer price index since its last adjustment in February 2002. The largest percentage increase goes to industries with a size standard of $2 million, such as real estate agents, which increases to $2.5 million. That standard was not changed in the last inflation adjustment. SBA said it continues to work on a comprehensive revision of all its size standards. The agency withdrew a 2004 proposal to base most standards on the number of employees rather than receipts, then asked for comments on the issue in December 2004. SBA said it cannot predict when its review will be finished. Administrator Hector Barreto said, “We decided to make these changes immediately, rather than wait, because of the pressing needs that so many small businesses have in the Gulf Coast and in Florida from the recent destructive hurricanes.” The interim rule is RIN 3245-AF41. Comments are due Jan. 5.