SBA has issued final rules updating some of its size standards. Below are highlights from the recent size changes. Be sure to review the particular NAICS code on any upcoming solicitations to see if one of these increased size standards applies.
SBA has issued final rules updating size standards in the categories summarized below. The new size standards will become effective April 30, 2022.
Agriculture, Forestry, Fishing and Hunting; Mining, Quarrying, and Oil and Gas Extraction; Utilities; Construction. (Final Rule)
SBA is increasing size standards for 68 industries in those sectors. This includes categories such as agriculture, where many size standards (which were already quite low) increased modestly. While SBA considered reducing size standards in the construction industry, it left most of those the same to avoid negative impacts on construction businesses.
Education Services; Health Care and Social Assistance; Arts, Entertainment and Recreation; Accommodation and Food Services; Other Services. (Final Rule)
“SBA is increasing the size standards for 70 industries in those sectors, including 14 industries in NAICS Sector 61 (Education Services), 18 industries in Sector 62 (Health Care and Social Assistance), 11 industries in Sector 71 (Arts, Entertainment and Recreation), four industries in Sector 72 (Accommodation and Food Services), and 23 industries in Sector 81 (Other Services).” One example is NAICS code 811213, Communication Equipment Repair and Maintenance, going from $12.0 up to $19.5 million.
Professional, Scientific and Technical Services; Management of Companies and Enterprises; Administrative and Support and Waste Management and Remediation Services. (Final Rule)
“SBA is increasing the size standards for 46 industries in those sectors, including 27 industries in NAICS Sector 54 (Professional, Scientific and Technical Services), two industries in Sector 55 (Management of Companies and Enterprises), and 17 industries in Sector 56 (Administrative and Support and Waste Management and Remediation Services).”
Within these categories, here are a few common NAICS codes that will see increases:
- NAICS 541310 (Architectural Services) from $8 million to $11 million
- NAICS 541330 (Engineering Services) from $16.5 million to $22.5 million
- NAICS 541611 (Administrative Management and General Management Consulting Services) from $16.5 million to $21.5
- NAICS 541990 (All Other Professional, Scientific and Technical Services) from $16.5 million to $17 million
Transportation and Warehousing; Information; Finance and Insurance; Real Estate and Rental and Leasing. (Final Rule)
“SBA is increasing the size standards for 45 industries in those sectors, including 18 industries in NAICS Sector 48-49 (Transportation and Warehousing), eight industries in NAICS Sector 51 (Information), ten industries in NAICS Sector 52 (Finance and Insurance), and nine industries in NAICS Sector 53 (Real Estate and Rental and Leasing).” One example in these categories was NAICS 531210 (Offices of Real Estate Agents and Brokers), increasing from $8 million to $13 million.
Be sure to check the particular size standards related to your company and industry. While many are staying the same, quite a few are increasing and could allow small businesses to stay small for a longer period of time.
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