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SBA Increases Small Business Size Standards for Construction




by:
Stephen J. Kelleher
Steven L. Reed
Alan I. Saltman
Smith, Currie & Hancock LLP - Washington Office

 
July 9, 2014

Previously published on June 19, 2014

In an interim rule published June 12, 2014, effective July 14, 2014, the Small Business Administration has updated its revenue based size standards for small businesses. Citing the need to adjust the size standards due to inflation at least once every five years, SBA made the first adjustment to the size standards for inflation since 2008. The size standards pertaining to the construction industry have all been increased.

NAICS Code

NAICS U.S. Industry Title

Old Standard

New Standard

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

237130

Power and Communication Line 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 or Department of Veterans Affairs for one of the specific small business programs, such as the HUBZone, Women Owned or the 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.

 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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Author
 
Stephen J. Kelleher
Steven L. Reed
Alan I. Saltman
Practice Area
 
Construction Law
 
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