SBA to Revise Revenue-Based Small Business Size Standards

On July 18, 2019, the Small Business Administration (“SBA”) issued an interim final rule with request for comments raising the revenue-based small business size standards to account for inflation.  SBA has established size standards for numerous classes of business for the purpose of determining whether a company is small.  These size standards differ based on the type of work performed by the company and are matched to the North American Industry Classification System (“NAICS”) Codes.  The size standards are based either on the company’s number of employees or average annual receipts.  The company must have fewer employees or less annual receipts than the stated size standard in order to qualify as a small business.