On July 23, 2019, the U.S. Small Business Administration issued an “interim final rule” that will adjust industry-specific monetary-based size standards by nearly 8.4% to reflect the inflation that has occurred since the last adjustment for inflation in 2014.
According to the SBA, this will allow more small businesses to become eligible for the SBA’s loan and contracting programs. The SBA is also adjusting the revenue-based size standards for agricultural industries.
These adjusted size standards will become effective on Aug. 19, 2019, and will be reviewed again as part of the second five-year review of size standards mandated by the Small Business Jobs Act of 2010.
The SBA is also adjusting program-specific monetary-based size standards by the same amount for sales or leases of government property and stockpile purchases.
90,000 | The SBA estimates that 90,000 new businesses will gain small business status under the adjusted size standards (becoming eligible for SBA loan and contracting programs).
$750 million|The SBA projects the change will result in an increase of $750 million in federal contracts awarded to small businesses
Highlights of the interim final rule that adjusts monetary small business size standards for inflation
8.37% |(Increases by) 8.37% all receipts-based size standards (except for agricultural industry size standards) for inflation that has occurred since the last inflation adjustment in 2014
8.37% | (Increases by) 8.37% all asset-based size standards for inflation that have occurred since the last inflation adjustment in 2014
40.26% | (Increases by) 40.36% the receipts-based size standards for agricultural industries for inflation that has occurred since the agricultural industry size standards were set by statute in 2000
8.37% | (Increases by) 8.37% the program-based size standards for “Sales or leases of government property” and “Stockpile purchases” for inflation that has occurred since the last inflation adjustment in 2014
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For more information about small business “size,” download this white paper (PDF) that explains how the SBA establishes, reviews, and modifies its small business size standards.