The United States Small Business Administration (SBA) has issued a final rule to modify employee based small business size standards for 36 industries and “exceptions” in the SBA’s table of size standards that are not part of North American Industry Classification System (NAICS) Sector 31-33 (Manufacturing), Sector 42 (Wholesale Trade), or Sector 44-45 (Retail Trade). Specifically, the rule
- Increases 30 size standards for industries and three “exceptions.”
- Decreases size standards from 500 employees to 250 employees for three industries, namely
- NAICS 212113 (Anthracite Mining),
- NAICS 212222 (Silver Ore Mining), and
- NAICS 212291 (Uranium-Radium-Vanadium Ore Mining).
- Maintains the Information Technology Value Added Resellers (ITVAR) “exception” under NAICS 541519 (Other Computer Related Services) as follows:
- It retains the 150‑employee size standard, and
- It amends footnote 18 to the SBA’s table of size standards by adding the requirement that the supply component of small business set-aside ITVAR contracts (i.e., computer hardware and software) must comply with the nonmanufacturing performance requirements or nonmanufacturer rule.
- Eliminates the Offshore Marine Air Transportation Services “exception” under NAICS 481211 (Nonscheduled Chartered Passenger Air Transportation), and NAICS 481212 (Nonscheduled Chartered Freight Air Transportation).
- Eliminates the Offshore Marine Services “exception” for industries in NAICS Subsector 483 (Water Transportation), and their $30.5 million receipts based size standards.
- Removes footnote 15 (the “exception” to Subsector 483) from the table of size standards.
The SBA estimates that about 375 additional firms may become small because of increased size standards for the 30 industries and three “exceptions” covered by this rule.
You can see the SBA’s final rule at Regulations.gov (search on “RIN 3245‑AG51” [without quotes]). You can also review the originally proposed rule together with all of the comments submitted by going to Regulations.gov. The proposed rule and the comments are included in the same docket.
The revised size standards are effective February 26, 2016.