SBA proposes change in size standards for real estate, education industries

first_imgProposed rules published today for comment in The Federal Register by the US Small Business Administration would adjust the size definition of small businesses in 29 industries in one sub-industry in two broad categories of businesses, ranging from real estate and property management to colleges, junior colleges and universities. The proposed adjustments to size standards in 20 industries and one sub-industry in Sector 53 of the North American Industry Classification System (NAICS), ‘Real Estate and Rental and Leasing,’ and in nine industries in Sector 61, ‘Educational Services,’ reflect changes in marketplace conditions in those sectors.   In both sectors, the proposed changes are based on annual gross revenues.  The standards delineate how large a business can be and still qualify as small for federal government programs. The dollar limits refer to annual revenues averaged over three years.  As part of the ongoing comprehensive review of all size standards as required under the Small Business Jobs Act of 2010, the SBA is evaluating all industries in these sectors that have revenue-based size standards to determine whether the existing size standards should be adjusted.  The last overall review of size standards occurred more than 25 years ago.The proposed changes take into account the structural characteristics within individual industries, including average firm size, degree of competition, and federal government contracting trends.  This ensures that size definitions reflect current economic conditions within those industries.  An SBA White Paper entitled ‘Size Standards Methodology’ (Oct. 21, 2009) explains how SBA establishes, reviews and modifies its receipts-based and employee-based small business size standards.  It is available for viewing at http://www.sba.gov/size(link is external). The upward revisions would allow some small businesses that are close to exceeding their current size standards to retain small business eligibility under the proposed higher size standards, and give federal agencies a larger selection of small businesses to choose from for small business procurement opportunities.  They also would allow more small businesses to qualify for SBA financial assistance.  SBA estimates that up to 13,000 more firms in Sector 53 and 1,500 more companies in Sector 61 will qualify for SBA assistance and other federal programs if the proposed revisions are adopted. Interested parties can submit comments on these proposed rules on or before January 17, 2012.  The SBA recommends that comments be submitted online at www.regulations.gov(link is external) or mailed to Khem R. Sharma, Chief, Size Standards Division, 409 3rd St., SW, Mail Code 6530, Washington, D.C.  20416.  The SBA will post all comments to www.regulations.gov(link is external) for public review.  The SBA does not accept comments submitted by email. For more information about SBA’s revisions to its small business size standards, click on ‘What’s New with Size Standards’ on SBA’s website at http://www.sba.gov/size(link is external).The proposed rule would affect the following industries in NAICS Sector 53: NAICScodes   NAICS Industry titles   Current size standard ($ million)       Proposed size standard ($ million)     531110  Lessors of Residential Buildings and Dwellings  $7.0    $25.5  531120  Lessors of Nonresidential Buildings (except Miniwarehouses)     $7.0    $25.5  531190  Lessors of Other Real Estate Property   $7.0    $25.5  Except, Leasing of Building Space to Federal Government by Owners       $20.5   $35.5  531210  Offices of Real Estate Agents and Brokers       $2.0    $7.0   531311  Residential Property Managers   $2.0    $7.0   531312  Nonresidential Property Managers        $2.0    $7.0   531320  Offices of Real Estate Appraisers       $2.0    $7.0   531390  Other Activities Related to Real Estate $2.0    $7.0   532111  Passenger Car Rental    $25.5   $35.5  532112  Passenger Car Leasing   $25.5   $35.5  532120  Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing        $25.5   $35.5  532210  Consumer Electronics and Appliances Rental      $7.0    $35.5  532220  Formal Wear and Costume Rental  $7.0    $19.0  532230  Video Tape and Disc Rental      $7.0    $25.5  532291  Home Health Equipment and Rental        $7.0    $30.0  532411  Commercial, Air, Rail, and Water, Transportation Equipment and Rental   $7.0    $30.0  532412  Construction, Mining and Forestry Machinery and Equipment Rental and Leasing    $12.5   $30.0  532420  Office Machinery and Equipment Rental and Leasing       $25.5   $30.0  532490  Other Commercial, and Industrial Machinery and Equipment Rental and Leasing     $7.0    $30.0  533110  Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)    $7.0    $35.5  The proposed rule would affect the following industries in NAICS Sector 61: NAICS code       NAICS industry title    Current size standard ($ million)       Proposed size standard ($ million)     611110  Elementary and Secondary Schools        $7.0    $10.0  611210  Junior Colleges        $7.0    $19.0  611310        Colleges, Universities and Professional Schools        $7.0    $25.5  611420        Computer Training        $7.0    $10.0  611430        Professional and Management Development Training        $7.0    $10.0  611519        Other Technical and Trade Schools        $7.0    $14.0  611630        Language Schools        $7.0    $10.0  611699        All Other Miscellaneous Schools and Instruction        $7.0    $10.0  611710        Educational Support Services        $7.0    $14.0last_img

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