SBA Increases Revenue-Based Size Standards for Five Years of Inflation
As of July 14, 2014 the Small Business Administration is adjusting all of its size standards that are based on revenue to account for five years of inflation since the last adjustment. There are 476 industries affected by the change. The SBA is using the Gross Domestic Product Price Index to obtain the best measure of inflation where it determined the amount of inflation from the first quarter of 2008 to the last quarter of 2013 was 8.73%. The SBA calculated the new size standards by multiplying the current size standards by 1.0873 and then rounded the total to the nearest $500,000 resulting in new standards between $5.5 million and $38.5 million. The SBA is now required to review its size standards every five years following passage of the Small Business Jobs Act of 2010 (Fed. Reg. 33647).
