The U.S. Small Business Administration (SBA) announced an interim final rule June 12 that will adjust monetary-based small business size standards to account for inflation. The rule will go into effect July 14 and the SBA is accepting comments from the public until August 11. 

According to the SBA, the interim final rule includes the following:

• Adjusts monetary based industry size standards (i.e., receipts, assets, net worth, and net income) for inflation that has occurred since the last adjustment in 2008.  These adjustments are in addition to the recent revisions that were part of the comprehensive size standards review, as mandated by the Small Business Jobs Act of 2010 (Jobs Act).
• Adjusts program based size standards, with the exception of the new alternative size standard for SBA’s 7(a) and 504 loan programs that was established under the Jobs Act.  The new alternative size standard will remain in effect until SBA establishes a permanent alternative size standard for the 7(a) and 504 loan programs.
• Deletes references to Surety Bond Guarantee size standards for contracts awarded in the Presidentially declared disaster areas following Hurricanes Katrina, Rita, and Wilma in 2005.
• Deletes the determination date for eligibility under the Agency’s Economic Injury Disaster Loan (EIDL) Program in connection with Hurricanes Katrina, Rita, and Wilma.
• Clarifies that footnote 9 to its table of size standards is not limited to NAICS 531190, but rather applies to all industries in Industry Group 5311, Lessors of Real Estate.

To learn more about the size standards pertaining to the construction industry, please read Smith Currie & Hancock’s LLP Client Alert. 

The SBA also includes this important note:
If you participate in federal government procurement programs, either as a prime contractor or as a subcontractor, your size status may change on July 14, 2014 as a result of this interim final rule. You must visit the System for Award Management and verify that your profile and certifications are up to date based on these revised size standards.