The U.S. Small Business Administration (SBA) has issued a rule that finalizes, without change, its November 2022 interim provisions that adjusted monetary-based industry size standards for inflation.
Specifically, the rule finalizes an additional 13.65% inflation increase to the monetary-based industry small business size standards to account for the inflation that occurred since the last adjustment to size standards for inflation in 2019. For Environmental Consulting Services (NAICS code 541620), under which many CRM firms are classified, the size standard therefore rises from $16.5 to $19.0 million.
The SBA rule also finalizes inflation adjustments to the economic disadvantage thresholds applicable to the 8(a) Business Development and Economically Disadvantaged Women-Owned Small Business programs, and the dollar limit for combined total 8(a) contracts.
In a separate action, the SBA has proposed to amend its Small Business Size Regulations to increase the alternative size standard for its 7(a) Business and Certified Development Company (CDC/504) Loan Programs by 34.46% to account for inflation that has occurred since the size standard’s establishment in 2010. The inflation adjustment would increase the size standard’s level for tangible net worth to $20 million and for net income to $6.5 million. SBA also is adjusting for inflation the applicable statutory limits for contract size under the Surety Bond Guarantee (SBG) Program. The adjustment would increase the contract limit to $9 million and to $14 million for Federal contracts if a Federal contracting officer certifies that such a guarantee is necessary.