Monday, December 19, 2005

SBA Increases Small Business Size Standards Due To Inflation

Some of you may have already seen this, but I'm posting here for general consumption. This and other SBA news items can be found here.

"SBA Increases Small Business Size Standards Due To Inflation
Interim Final Rule With Request For Comments

SBA has adjusted its monetary-based size standards (e.g., receipts, net worth, and financial assets), for the effect of inflation that has occurred since the last inflation adjustment in February 2002. Since the last inflation adjustment, the general level of prices has increased 8.7%. This action restores small business eligibility to businesses that have lost that status due to inflation. In addition, this rule changes the process for determining the size of small business concerns applying for SBA Business Loans and Economic Injury Disaster Loans (EIDL) from a test considering only the primary industry of the applicant, to a two-part test considering both the primary industry of the applicant and the primary industry of the applicant with affiliates. This rule also changes the date on which SBA determines size status for purpose of EIDL applications for businesses located in disaster areas declared as a result of Hurricanes Katrina, Rita, and Wilma.

The increased size standards are effective December 5, 2005.

For purposes of Federal procurements, this rule applies to solicitations, except for noncompetitive section 8(a) contracts, issued on or after January 5, 2006. For purposes of noncompetitive section 8(a) contracting actions, the new size standards are applicable to offers of requirements that are accepted by SBA on or after January 5, 2006.

Comments to the interim final rule are due by close of business January 5, 2006."

You may read and/or download the interim final rule published in the December 5, 2005 Federal Register (available in PDF form here (pages 7-18 provide the new size standard tables for specific NAICS codes).

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