Reading the Tea Leaves from SBA’s Regulatory Agenda

We’re back with another edition of looking for interesting tidbits from SBA’s semiannual regulatory agenda. SBA (along with other agencies) provide a guide to upcoming regulations. This schedule can help contractors determine when SBA is likely to update certain rules. Here are a few key updates.

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Setting the Standard: How the SBA Determines Size Standards for Small Businesses

In a recent post, we examined some proposed new size standards for manufacturing and other industries that utilize employee-based size standards. This probably got many of you wondering: How does the SBA determine what the size standards should be? It’s a good question, and today, we’re going to look at just that. Hopefully, this will provide some insight as to the SBA’s approach to setting size standards.

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Industrial Expansion: Proposed New Size Standards for Manufacturing and Other Industries with Employee-Based Size Standards

The SBA’s regulations state it will examine monetary-based size standards (e.g., receipts, net income, assets) at least once every five years and determine if adjustments are needed to those standards at such time. 13 C.F.R. § 121.102. But what about employee-based size standards? In fact, the same rule applies for reviewing and adjusting those standards as a result of the Small Business Jobs Act of 2010. On April 26, 2022, the SBA published its proposed rule to change the size standards for a number of employee-based size standards for manufacturing and other industries. Let’s look at these changes.

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Department of Defense Proposes Rule to Reauthorize and Improve the Mentor-Protégé Program

The Department of Defense (DoD) has proposed to revise the Defense Federal Acquisition Regulations (DFARS) to reauthorize and improve the DoD Mentor-Protégé Program (MPP). The primary purpose of the proposed rule (Proposed Rule) is to reauthorize the DoD MPP, provide incentives to large DoD contractors to serve as mentors to small businesses, and extend opportunities for small businesses to participate in the MPP. In addition, the proposed rule removes restrictions on the eligibility of small businesses by aligning the size of the small business with the size standard associated with its primary NAICS code.

The Proposed Rule is here.

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What’s on SBA’s Regulatory Plate for 2022? A Hint: Increased Size Standards

SBA publishes its semiannual Regulatory Agenda to provide an update on the various rules it has in the pipeline and an estimate for when they will be published or become final. While SBA doesn’t have to meet these timeframes, it’s always good to check in on what SBA has been working on when the final rules will come out. This agenda includes an update on increased size standards, along with some other important rules. Read on for the highlights and be sure to comment on any rules that you have an opinion on.

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SBA Proposes Rule to Use 24-Month Period to Calculate Number of Employees

The SBA has released a proposed rule to use a 24-month period to calculate a company’s number of employees for eligibility purposes in all of SBA’s programs. This change will affect any business seeking to qualify as small under an employee-based NAICS code, such as those applicable to manufactured products.

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