Rules Regarding Employee-Based Size Standards Released Soon

January 29, 2016

SBA Considers Public Comments on Proposed Size Standard Increases to NAICS Codes 562910 and 541519

Source: JD Supra Business Advisor, Jon Williams, PilieroMazza PLLC, January 26, 2016

As we previously reported, on September 10, 2014, the SBA released proposed increases to the small business standards for many industries that use employee-based size standards. The final rule is scheduled to be published on January 26, 2016; however, a pre-publication of the final rule is available now at

According to the pre-publication, the SBA will adopt most of the proposed changes with two key exceptions. The SBA is not increasing the Environmental Remediation Services (“ERS”) exception under NAICS 562910 from 500 employees to 1,250 employees and it is not eliminating the Information Technology Value Added Resellers (“ITVAR”) exception under NAICS 541519 (Other Computer Related Services).

Regarding NAICS code 562910, the SBA explained that following its evaluation of public comments to the proposed substantial size increase, as well as its evaluation of more recent data, the SBA decided to increase the size standard for the ERS exception under NAICS 562910 from 500 employees to 750 employees, which is considerably lower than the initially proposed size standard increase to 1,250 employees. The SBA estimates that, as a result of the size standard increase, approximately 10-15 additional firms will likely gain small business status which the SBA believes will not significantly impact the small businesses that currently have fewer than 500 employees.   Read More …

What could this mean for your business? Contact your nearest PTAC for more information.


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