SBA redefines size standards for construction, utilities firms
THE U.S. SMALL BUSINESS Administration has redefined the maximum size a firm in the construction and utilities sectors can be to quality as a small business. Under the revised standards, nearly 500 additional construction firms will become eligible for SBAâ€™s loan and federal-procurement programs, as well as nearly 400 additional utilities firms.
PROVIDENCE â€“ The U.S. Small Business Administration has revised its size standards for the construction and utilities sectors, redefining the maximum size a firm can be and still be considered a small business.
In the construction sector, the SBA increased the size standards from $7 million to $25 million in annual revenue for firms in the land subdivision industry, and from $20 million to $25.5 million for businesses engaged in dredging and surface cleanup activities.
Nearly 500 additional firms will qualify as small businesses under the new construction size standards and become eligible for SBAâ€™s loan and federal-procurement programs.
In the utilities sector, the SBA increased the size standards from $7 million to $25 million in annual revenue for water supply and irrigation systems firms, from $7 million to $19 million for sewage treatment facilities, and from $12.5 million to $14 million for steam and air-conditioning supply firms.
In addition, the SBA changed the determinant for business size from annual megawatt hours to number of employees in 10 electric power generation, transmission, and distribution industries. Following the change, the maximum number of employees to qualify as a small business is 500 for hydroelectric power generation firms; 750 for fossil fuel and nuclear electric power generation firms; 250 for solar, wind, geothermal, biomass and other electric power generation firms; and 500 for electric bulk power transmission and control firms.
The utilities sector amendments also removed a footnote that labeled a firm was a small business if the firm or its affiliates primarily engaged in the generation, transmission or distribution of electric energy for sale and its total electric output for the preceding fiscal year did not exceed 4 million megawatt hours.
Nearly 400 additional firms will qualify as small businesses under the new utilities size standards.
The revised standards reflect changes in marketplace conditions and public comments that SBA received to its earlier proposed rules, the federal agency said in a release on Monday. In addition to allowing more businesses to obtain small-business status, the new size standards give federal agencies a larger pool of small businesses from which to choose for their procurement programs, the SBA said.
Join PBN and two panels of successful female executives, business owners and entrepreneurs as we delve into what women should do to advance their careers, and become leaders in the corporate world and their own enterprises.
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.