SBA Proposal to Modify Size Standards

November 17, 2021

The U.S. Small Business Administration (SBA) issued a proposal to modify two of the methods the organization uses to qualify which businesses classify as small businesses for government contracts and SBA loan and investment programs.  

The proposed changes would extend the averaging period for calculating a small business’s number of employees from 12 to 24 months and apply the change to all of SBA’s programs. The proposed modifications would also allow small businesses participating in SBA loan programs and Small Business Investment Company (SBIC) programs to choose between the new five-year averaging period or the existing three-year averaging period for the purposes of calculating average annual revenues. 

The SBA estimates that implementing these changes would result in about 67,650 additional businesses gaining access to SBA loan programs and about 450 additional businesses gaining access to SBA’s contracting programs. 

The SBA is inviting the public to submit comments on these proposed changed on or before December 2, 2021.  

The comments can be submitted at www.regulations.gov or via FederalRegister.gov and identified by the following RIN number: RIN 3245-AH26.  Comments will also be accepted by mail directed to Khem R. Sharma, Chief, Office of Size Standards, 409 3rd Street SW, Mail Code 6530, Washington, D.C. 20416. 

For more information about SBA’s Office of Size Standards and revisions to its small business size standards for industry sectors, please visit http://www.sba.gov/size