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SBA increases small business size standards for construction

June 27, 2014 By ei2admin

The SBA has published an interim final rule which increase in size standards for nine major categories of construction.    SBA size standards define the maximum size a firm can be and still be considered a small business.   The new standards are shown in the table below.

While the increases in the size standards are not dramatic, they could make a difference for construction companies on the verge of graduating; those that have recently graduated; and those that want to submit offers as a small business.

The interim rule is effective July 14, 2014, and can be found at: http://www.gpo.gov/fdsys/pkg/FR-2014-06-12/pdf/2014-12868.pdf.

NAICS Code

NAICS U.S. Industry Title

Old Standard

New Standard

238210

Electrical Contractors and Other Wiring Installation Contractors

$14 million

$15 million

237130

Power and Communication Line and Related Structures Construction

$33.5 million

$36.5 million

236210

Industrial Building Construction

$33.5 million

$36.5 million

236220

Commercial and Institutional Building Construction

$33.5 million

$36.5 million

237110

Water and Sewer Line and Related Structures Construction

$33.5 million

$36.5 million

237120

Oil and Gas Pipeline and Related Structures Construction

$33.5 million

$36.5 million

237210

Land Subdivision

$25.5 million

$27.5 million

237310

Highway, Street, and Bridge Construction

$33.5 million

$36.5 million

237990

Other Heavy and Civil Engineering Construction

$33.5 million

$36.5 million

237990

Dredging and Surface Cleanup Activities

$25.5 million

$27.5 million

Subsector 238

Specialty Trade Contractors

$14 million

$15 million

The new size standards will govern what contractors can certify as small businesses when they bid on or submit a proposal for projects on or after July 14, 2014, or seek certification, after that date, through the SBA for the 8(a), HUBZone or woman-owned small business programs or seek verification through the Department of Veterans Affairs for the Veteran Owned or Service-Disabled Veteran Owned small business programs.

Contractors at or near the size standard should take this opportunity to conduct a review of their last three fiscal years’ tax returns to determine their average annual receipts. 

Filed Under: Contracting News Tagged With: construction, SBA, size standards

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