Government Contracts SBA Proposes Changes to Size Standards Regulations
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Friday, July 19, 2019

SBA Proposes Changes to Size Standards Regulations

By Government Contracts Editorial Staff

A proposed rule would modify the method the Small Business Administration uses to calculate annual average receipts for small business size standards. The rule would amend SBA’s regulations at SBA 121.104 and SBA 121.903 on the calculation of annual average receipts for all receipts-based SBA size standards, and other agencies’ proposed size standards for service-industry firms, from a three-year averaging period to a five-year averaging period. The change to a five-year averaging period would promote government-wide consistency on small business size standards. SBA’s size standards establish eligibility for a variety of small business assistance programs, including government contracting, business development, and loan guarantee programs. SBA issued the rule to implement the Small Business Runway Extension Act of 2018 (PL 115-324), which amended the Small Business Act at 15 USC 632(a)(2)(C)(ii)(II) to modify the requirements for proposed small business size standards prescribed by an agency without separate statutory authority to issue size standards. Comments on the proposed rule are due August 23, 2019. See ¶70,425.634 for the text of the rule.

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