EL SEGUNDO, CA — Over 4,000 more firms in the United States, spread across 46 industries in the North American Industry Classification System, are posed to become eligible to receive the various benefits and assistance programs that small business get, as the US Small Business Administration proposes a new standard in small business size.
The SBA proposal, which is designed to determine the maximum number of employees that a firm could have to be called a small business, reflects existing market conditions in each industries to effectively meet the needs of individual businesses.
“We [SBA] recognize that small business is critical to our economic recovery and strength, to building America’s future, and to helping the United States compete in today’s global marketplace,” the agency said on its Mission Statement.
“SBA reviewed all 71 industries in NAICS Sector 42 and two industries in NAICS Sector 44-45 that have employee based size standards as part of its ongoing comprehensive size standards review. These revisions primarily affect eligibility for SBA’s financial assistance programs,” posted the SBA on its website.
In its present iteration, the SBA proposes to: 1.Increase employee-based size standards for 46 industries in NAICS Sector 42, Wholesale Trade; 2. Increase the employee-based size standard for one industry in NAICS Sector 44-45, Retail Trade; 3. Retain the current size standards in the remaining industries in those sectors; 4. Retain the current 500-employee size standard for Federal procurement of supplies under the non-manufacturer rule (13 CFR 121.406).
If approved, the proposal will give a number of US-based wholesalers and retailers access to SBA financial assistance, aid programs, and counselling.
In coming up with the proposed business size standard, the SBA takes into account each industry’s characteristics, such as average firm size, startup cost and entry barriers, the degree of competition, and small business share of federal government contracting dollars. This individual approach is designed to “ensure that small business size definitions reflect current economic conditions and federal marketplace in those industries,” added the SBA.
For more information on the SBA proposal, visit www.sba.gov/size.
ABOUT THE US SBA — Founded in 1953, the United States Small Business Administration leads the federal government effort in assisting small businesses succeed in the US by providing support and assistance such as loans, loan guarantees, contracts, counselling sessions and other forms of support. Through a network of local offices and partnerships with both public and private sectors, the SBA aims to enable Americans to start, operate, and grow a business in the US, Puerto Rico, US Virgin Islands, and Guam.