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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: October 24, 2002

SUBJECT: Small Business Administration; Inflation Adjustment to Size Standards for Service Industries

SOURCE: Federal Register, Ocotber 24, 2002, Vol. 67, No. 206, page 65285

AGENCIES: Small Business Administration (SBA)

ACTION: Final Rule

SYNOPSIS: SBA is adopting as final, without change, the January 23, 2002, interim final rule that adjusted the monetary-based size standards (determined by receipts, net income, net worth, and assets) by 15.8% for the effect of inflation from 1994 (the last time the monetary-based size standards were adjusted).

EDITOR'S NOTE: The SBA's regulations are in Title 13 of the Code of Federal Regulations (CFR). The SBA small business size regulations are in Chapter 1, Small Business Administration; Part 121, Small Business Size Regulations; Subpart A, Size Eligibility Provisions and Standards; Section 121.201, What size standards has SBA identified by North American Industry Classification System codes?

For more on the interim final rule that adjusted the small business size standards, see the January 23, 2002, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Inflation Adjustment to Size Standards for Service Industries."

A complete listing of current size standards is available at SBA's Size Standards website at http://www.sba.gov/size, or by calling 202-205-6618 and requesting a copy of the table of size standards.

EFFECTIVE DATE: October 24, 2002.

FOR FURTHER INFORMATION CONTACT: Diane Heal, Office of Size Standards, 202-205-6618.

SUPPLEMENTAL INFORMATION: On January 23, 2002, the SBA increased its monetary-based size standards by 15.8% to compensate for inflation between 1994 (the last time the monetary-based size standards were adjusted) and the third quarter of 2001. In addition, SBA added a paragraph (c) to 13 CFR 121.102, How does SBA establish size standards?, to state that SBA will examine the small business size standards at least once every five years to assess the affect of inflation. SBA received 32 comments on the interim final rule, but decided not to adopt any of them. Therefore, SBA is finalizing the interim final rule without changes.

SBA estimates approximately 8,760 businesses will regain their small business status as a result of this change. The following is SBA's estimated distribution of these firms, by North American Industrial Classification System (NAICS) sectors and subsectors:

NAICS Sectors and Subsectors
Number of firms
Retail
      Sectors 44-452,800
Services
      Sectors 51, 52, 54, 55, 61, 62, 71, 72, 81,
      and Subsectors 531, 532, 561
4,100
Finance, Insurance and Real Estate
      Sectors 52-53650
Transportation & Utilities,
      Sectors 22 & 48450
Construction and Refuse
      Sector 23 & Subsector 562760
            Total8,760

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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