SBA Issues Rule Adjusting Monetary Size Standards for Inflation

The U.S. Small Business Administration (SBA) has issued a joint final rule and interim final rule that adjusts monetary small business size standards for inflation. Specifically, the final rule and interim final rule:

• Adopts, without change, SBA’s July 18, 2019, interim final rule (84 FR 34261) that adjusted monetary-based industry size standards for inflation that occurred since the previous inflation adjustment in 2014.
• Adopts a 13.65 percent increase over the monetary small business size standards issued as part of the second quinquennial review of size standards that concluded earlier this year. This accounts for the inflation that occurred between Fourth Quarter 2018 and Second Quarter 2022.
• Adjusts three program-specific monetary size standards to account for inflation:
  1. The size standards for sales or leases of government property: $8 million to $9 million in average annual receipts
  2. The size standards for stockpile purchases: $67.5 million to $76.5 million in average annual receipts
  3. Alternative size standard for the SBIC program: - Tangible net worth: $19.5 million to $24 million - Net income: $6.5 million to $8 million

• Adjusts for inflation the economic disadvantage thresholds applicable to the 8(a) Business Development and Economically Disadvantaged Women-Owned Small Business (EDWOSB) programs, and the dollar limit for combined total 8(a) contracts:
  • Economic disadvantage thresholds for 8(a) and EDWOSB programs:
    • Net worth (13 CFR 124.104(c)(2)): $750,000 to $850,000
    • Income (AGI) (124.104(c)(3)): $350,000 to $400,000
    • Total Assets (124.104(c)(4)): $6,000,000 to $6,500,000
  • Dollar limit for combined total 8(a) contracts (124.519): $100,000,000 to $168,500,000

SBA’s changes are effective on December 19, 2022. If you would like to submit comments on SBA’s rulemaking, identify them by RIN 3245-AH93. We recommend that you comment through the Federal eRulemaking Portal: https://www.regulations.gov. You may also submit comments by Mail/Hand Delivery/Courier to: Khem R. Sharma, Ph.D., Chief, Office of Size Standards, 409 Third Street SW, Mail Code 6530, Washington, DC 20416. The period for comments ends on January 17, 2023. You may review the rule together with comments from interested parties by going to https://www.regulations.gov.