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SBA amends poliy

The U.S. Small Business Administration (SBA) issued an interim ruling on Monday that will adjust monetary based small business size standards for inflation, to allow more small businesses to become eligible for SBA’s financial and federal government procurement assistance programs. These changes mean that adjustments on inflation for figures such as receipts, assets, net worth and income could now play a factor in determining program eligibility.

The SBA is adjusting all of the industry specific monetary based size standards to adjust for inflation since the last adjustment in 2008.  These changes are in addition to the recent modifications made to the small business size standards as a result of the SBA’s all-inclusive size-standards review, mandated by the Small Business Jobs Act of 2010.

The SBA is adjusting its program specific monetary size standards, with the exception of the new alternative size standard based on tangible net worth and net income that applies to the SBA’s 7(a) and 504 loan programs.  The new standard was implemented under the Small Business Jobs Act, and will remain in place until the SBA establishes a permanent alternative size standard for its programs.

The temporary final rule also establishes that the size standard exception for “Leasing of Building Space to Federal Government by Owners” under footnote 9 in the SBA’s table of size standards applies to all industries in the North American Industry Classification System (NAICS) Industry Group 5311, Lessors of Real Estate.

All of the changes are scheduled to go into effect starting July 14, 2014.  The SBA predicts that at least 8,000 additional businesses will gain small business status under the adjusted size standards, and become eligible for SBA’s financial and federal government procurement programs.  These changes in SBA policy could potentially lead to more than $150 million to $200 million in additional federal contracts awarded to small businesses, and 80 additional loans totaling about $30 million.

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VAMBOA: SBA Amends Policy: By Debbie Gregory