Last week we reported on rampant confusion about the size of a small business and some Republican leaders' objections to any changes in IRS definitions of small business is right now.
Today, the U.S. Small Business Administration announced new rules increasing the size standards for businesses in 58 industries within three NAICS sectors: real estate and rental and leasing; educational services; and health care and social assistance. Effective Oct. 24, more than 18,000 additional businesses will qualify as small businesses under the new standards, according to SBA. For some industries, average annual receipts thresholds have been doubled, tripled, or even quadrupled.
Since the Small Business Jobs Act of 2010 called for a comprehensive review of all size standards, SBA has proposed new size standards for many industries. SBA says the latest revisions "reflect changes in marketplace conditions" and public comments it received to the proposed rules.
"New size standards will enable more businesses in these sectors to obtain or retain small business status; will give federal agencies a larger pool of small businesses from which to choose for their procurement programs; and will make more small businesses eligible for SBA's loan programs," SBA stated in an announcement today.
New rules and public comments can be seen at Register.gov in a search by RIN number:
- Real Estate and Rental and Leasing (RIN 3245-AG28).
- Educational Services (RIN 3245-AG29).
- Health Care and Social Assistance (RIN 3245-AG30)