About 59,000 small businesses previously ineligible for the Small Business Administration’s federal contract and loan programs will now be eligible under four new final rules.
The new rules changed revenue-based small business size standards in 16 industries, qualifying businesses in those industries for SBA programs, the SBA announced April 4.
Increases in size standards will allow some medium-sized businesses to regain their small business status and existing small businesses to retain their small business status for a longer period, allowing them to benefit from procurement and SBA loan.
“The release of these final rules will make an additional 59,000 businesses eligible for millions of dollars in revenue and business expansion opportunities across a wide range of industries,” said the Associate Administrator for Government Procurement and Business Development. companies, Bibi Hidalgo. “This expansion is equally important for contracting agencies, as a diverse industrial base helps ensure a healthy supply chain and, in turn, supports the broader economic health of our country.”
The final rules are part of the second five-year review of size standards, as required by Small Business Jobs Act 2010.
As part of the review process, the SBA received more than 1,100 public comments during the proposed rule stage of the four rules. As a result, the SBA will increase 229 size standards in 16 sectors.
In addition to expanding access to SBA programs for approximately 59,000 businesses, the SBA estimates that the final four rules will create an estimated $1 billion in procurement opportunities for 844 newly qualified small businesses and award 96,7 (a) and 504 newly qualified small business loans worth nearly $45 million.
Revisions to the size standards adopted in these final rules reflect SBA’s considerations on relevant data, public comment, and the impacts of the ongoing COVID-19 pandemic on small businesses and the overall economy and response. of the government.
In response to the pandemic, the SBA will retain current size standards where otherwise data suggests size standards should be lowered.
As part of the ongoing size standards review, in the coming months the SBA plans to issue additional rules on size standards in Sector 42 (wholesale trade), Sector 44-45 (trade retail) and sector 31-33 (manufacturing).