This month, SBA issued a final rule updating its size standards for multiple NAICS codes in the manufacturing industries and industries with employee-based size standards in other sectors (except wholesale trade and retail trade). As the final rule explains in great detail, SBA increased some of the NAICS code’s size standards and retained others. Additionally, SBA decided to retain an employee based size standard for the nonmanufacturer rule. Let’s take a closer look.
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Friendly Inflation: SBA Adjusts Size Standards, Economic Disadvantage Limits, and 8(a) Sole Source Dollar Limits for Inflation
It probably doesn’t need to be said that all of us have been chafing under inflation lately, and federal contractors are certainly no exception. Rises in costs for goods and labor have exerted serious pressure on businesses and households worldwide. However, not all inflation is bad. SBA recently released a final rule taking into account the inflation of the past few years when it comes to the various receipts-based size-standards and economic disadvantage limits, as well as finally adjusting the 8(a) Business Development Program sole source limits. These changes are crucially important for those businesses that have just barely exceeded the applicable size standards, or that were getting close to the maximum. In this post, we’re going to explore this rule.
Continue readingThe DoD Mentor-Protégé Program’s New Look: Expanded Protégé Eligibility
Many SBA programs and offerings have their origins in other agencies or parts of the federal government. Contractors who do not work with the DoD might be surprised to learn that the DoD’s own Mentor-Protégé Program is in fact the oldest continuously operating mentor-protégé program, dating back to the First Gulf War. Recently, this program received some updates, one of which will greatly expand the pool of eligible proteges. Let’s take a look at these changes in more detail.
Continue readingReading 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.
Continue readingDon’t Ignore NAICS Code Changes: New Rule a Reminder to Contractors
While many industries have existed since time immemorial, new industries are created and old industries fade all the time. A mere twenty-five years ago, there was no such thing as social media and video rental stores were all the rage. Now the former is a multi-billion-dollar industry, and the latter is basically extinct. In recognition of the changes that we experience over time, the U.S. Office of Management and Budget routinely revises the North American Industry Classification Systems (NAICS), which the SBA in turn incorporates as the new applicable NAICS codes. More importantly for contractors, this includes a change in size standards for businesses. In early July 2022, the SBA proposed a rule doing just that which would apply effective October 1, 2022, which we will explore in this post.
Continue readingSBA Updates Size Standards for Wholesale Trade and Retail Trade
SBA has issued new size standards for industries in the Wholesale Trade and Retail Trade sectors. The interesting thing about these size standards is that they don’t apply to federal procurement actions. Instead, there is a different size standard for supply contracts. So, did SBA see fit to increase the supply-contract size standard?
Continue readingUpcoming SBA Rule Will Switch to 24-Month Calculation for Employee Size Standards
SBA has issued a final rule changing all employee size standards to a 24-month calculation. This rule is scheduled to be published in the Federal Register on June 6, 2022, and and will take effect 30 days from the date it is officially published. Let’s take a closer look.
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