84 www.blackeoejournal.com Black EOE Journal
he U.S. Small Business Administra- tion issued four final rules to modify revenues-based small business size standards in 16 North American Industrial Classifica- tion System (NAICS) sectors that will increase small business eligibility for SBAs federal contracting and loan programs for approxi- mately 59,000 additional firms. The final rules are part of the second five-year review of size standards, as required under the Small Busi- ness Jobs Act of 2010.
New rule changes may create contracting opportunities estimated at
for 844 newly qualified small businesses and extend nearly
in loans to newly qualified small businesses.
SBA Expands Small Business Federal Contracting and Loan Programs
As part of the review process, the SBA received more than 1,100 public comments during the proposed rule stage of the four rules. As a result, the SBA will increase 229 size standards across 16 sectors. The National Minority Supplier Diversity Council, otherwise known as NMSDC, expressed their approval of the rule modifi- cations, stating how these changes will affect small businesses: Our national network of over 15,000 MBEs will benefit greatly from this new rule change, Ying McGuire, CEO and president of NMSDC stated in a press release. And, it is our hope to continue to work with Administrator Guzman and the Administration to bring greater eco- nomic equity, transparency and accountability in federal government contracting. In addition to expanding access to SBA programs for approximately 59,000 additional irms, SBA estimates that the four final rules will create contracting opportunities estimated at $1 billion for 844 newly qualified small businesses and extend 96 7(a) and 504 loans to newly qualified small businesses worth nearly $45 million. The size standards revisions adopted in these final rules reflect SBA's considerations of the relevant data, public comments and impacts of the ongoing COVID-19 pandemic on small businesses and the overall economy and government response. In response to the pandemic, the SBA will retain current size standards where otherwise data suggests that size standards should be lowered. The increases in size standards in 16 sectors will enable some mid-sized businesses to regain their small business status and current small businesses to retain their small business status for a longer period, thereby allowing them to benefit from SBA's procurement and loan programs. As part of the ongoing review of size stan- dards, in the coming months, SBA plans to issue additional rulemakings on size stan- dards in Sector 42 (Wholesale Trade), Sector 44-45 (Retail Trade) and Sector 31-33 (Manufacturing). In short, the final rule in the Federal Register affects four key areas: transportation and warehousing, information, inance and insurance, real estate and rental and leasing. SBA continues to evolve its approach on size standards to ensure that we create access to contracting and loan opportunities for as many small businesses as possible, said Associate Administrator for Government Contracting and Business Development Bibi Hidalgo. The publication of these final rules will make 59,000 additional firms eligible for millions of dollars in revenue and business expansion opportunities across a wide range of sectors. This expansion is equally important for contracting agencies, as a diverse indus- trial base helps ensure a healthy supply chain and, in turn, supports our nations broader eco- nomic health.
Source: Small Business AdministrationPrevious Page