SBA Final (Four) Rules: Receipts-Based Size Standards for 229 Industries to Increase

The NCAA Men's Final Four will take place on Saturday and the Women's Final Four will take place tonight. Perhaps in feeling the excitement of March Madness, yesterday, the U.S. Small Business Administration ("SBA") published its final (four) rules to increase the receipts-based size standards for over two hundred North American Industry Classification System ("NAICS") codes. Small businesses in the NAICS Sectors below should check these rules to see if your size standard is going up.

All four rules are effective on May 2, 2022.

Agriculture, Forestry, Fishing and Hunting; Mining, Quarrying, and Oil and Gas Extraction; Utilities; Construction

SBA is increasing size standards for 68 industries in NAICS Sectors 11, 21, 22, and 23, including:

• 115310 – Forest Fire Suppression Services – from $20.5 million to $30 million

• 115310 (Exception 2) – Fuels Management Services – from $20.5 million to $30 million

• 221310 – Water Supply and Irrigation Systems – from $30 million to $36 million

• 237990 (Exception) – Dredging and Surface Clean-Up Activities – from $30 million to $32.5 million

Education Services; Health Care and Social Assistance; Arts, Entertainment and Recreation; Accommodation and Food Services; Other Services

SBA is increasing the size standards for 70 industries in NAICS Sectors 61, 62, 71, 72, and 81, including:

• 611710 – Educational Support Services – from $16.5 million to $21 million

• 712190 – Nature Parks and Other Similar Institutions – from $8 million to $17 million

• 811213 – Communication Equipment Repair and Maintenance – from $12 million to $19.5 million

• 812990 – All Other Personal Services – from $8 million to $13 million

Professional, Scientific and Technical Services; Management of Companies and Enterprises; Administrative and Support and Waste Management and Remediation Services

SBA is increasing the size standards for 46 industries in NAICS Sectors 54, 55, and 56, including:

• 541330 – Engineering Services – from $16.5 million to $22.5 million

• 541490 – Other Specialized Design Services – from $8 million to $12 million

• 541611 – Administrative Management and General Management Consulting Services – from $16.5 million to $21.5 million

• 541990 – All Other Professional, Scientific and Technical Services – from $16.5 million to $17 million

Transportation and Warehousing; Information; Finance and Insurance; Real Estate and Rental and Leasing

SBA is increasing the size standards for 45 industries in NAICS Sectors 48-49, 51, 52, and 53, including:

• 481219 – Other Nonscheduled Air Transportation – from $16.5 million to $22 million

• 485113 – Bus and Other Motor Vehicle Transit Systems – from $16.5 million to $28.5 million

• 517410 – Satellite Telecommunications – from $35 million to $38.5 million

• 531312 – Nonresidential Property Managers – from $8 million to $17 million

Takeaway

The SBA final (four) rules are welcome news for small business, as the size standards for 229 industries are set to increase on May 2, 2022. Contractors in the above NAICS Sectors should check these rules to see if any of your size standards will be increasing. For some small businesses, this rule change means that you might be able to stay small, and therefore remain eligible for set-aside contracts, for a longer time.

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