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Size standards change due to inflation


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Good afternoon. 

Do the experts here have any thoughts or opinions on this significant change to the size standards due to inflation - 

https://www.federalregister.gov/documents/2022/11/17/2022-24595/small-business-size-standards-adjustment-of-monetary-based-size-standards-disadvantage-thresholds 

Especially since some of the revenue averages were only recently updated (for eg: revenue for NAICS 541611 was recently increased to $21.5 million earlier this year). And, SBA published it as an interim final rule already and not sure if they intend to revert or make changes down based on comments from the industry.

Thank you for the thoughts as always!

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Here's a thought:

The most interesting thing I found in in SBA's 37-page document was this comment, which appears on page 69133 of the Federal Register announcement, at the bottom of the second column, in the first paragraph immediately under the heading, "SBA Response":

Quote

SBA agrees with commenters supporting the rule that there are a myriad of benefits of adopting the changes to size standards adopted in the July 2019 IFR. The most significant benefits were described in the regulatory impact analysis section of the July 2019 IFR. The primary benefits include: (1) Some businesses that are above the current size standards may gain small business status under the higher, inflation-adjusted size standards, thereby enabling them to participate in Federal small business assistance programs; (2) Growing small businesses that are close to exceeding the current size standards will be able to retain their small business status under the higher size standards, thereby enabling them to continue their participation in the programs; and (3) Federal agencies will have a larger pool of small businesses from which to draw for their small business procurement programs.

Administrative agencies are often more than just administrators. They are often policy advocates and, as such, they like to enlarge their constituencies. That's one reason why some socio-economic programs never go away. Job security. The more "small businesses" getting Government benefits the better. I love the underlying logic of benefit No. 3.

P.S. How many of you know that during the 1960s-70s SBA considered American Motors Corporation, maker of the Jeep, to be a small business? AMC had a lock on vehicle sales to the government for several years due to its size status.

AMC was purchased by Chrysler (Lee Iacocca) in 1987. Lee wanted the Jeep brand.

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Thanks Vern. Always appreciate your insightful thoughts/comments. Definitely an interesting perspective. I talked to a few folks and it does look like the new increased $$ will stick and they have not seen numbers adjusted down after an interim final rule.

That was the reason I wanted to know if the experts saw anything differently in their experience. 

Thanks again for the thoughts.

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