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Rule Change Allows Small Businesses to Qualify for SBA Assistance
The U.S. Small Business Administration has increased its revenue-based size
standard for small businesses in the facilities support services industry from
$6 million in average annual receipts to $30 million.
The new size standard will allow more companies to qualify for small business
assistance and compete as a small business for federal contracts. It was published
as a final rule in the Federal Register on October 15, 2003, and is effective
on November 1, 2003. Under the new rule, the sub-category of base maintenance
will also increase from $23 million to $30 million.
The change was the result of numerous requests from small businesses in the
facilities support services industry. Representatives from these companies argued
that an increase in size standards is warranted to reflect the size of federal
contracts in this industry and that it would allow them to grow to a size at
which they can effectively compete with large businesses. Based on a review
of these issues and data on the facilities support services industry, SBA concluded
that a higher size standard for this industry is appropriate. SBA examined factors
including average firm size, distribution of firms by size, state-up costs and
industry competition.
“We recognized the potential for growth in this industry and increased
the size standard to ensure that small businesses will receive access to capital
and their fair share of contracting opportunities,” said SBA Administrator
Hector V. Barreto.
SBA’s size standards define whether a business entity qualifies as small
and whether it is eligible for government programs and assistance reserved for
small businesses, including some programs in other agencies. Under the new rule,
more small businesses will be eligible to apply for SBA’s financing and
loan programs as well as contracting and businesses will be eligible to apply
for SBA’s financing and loan programs as well as contracting and business
development programs such as the 8(a) Business Development program, HUBZone
Empowerment Contracting program and small business set-asides.
For additional information on the new size standard, visit the SBA’s Office
of Size Standards Web page at www.sba.gov/size and click on “What’s
New?”
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