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SBA Increases Small Business Size Standards for Businesses in Numerous Industries, Including Construction




by:
Edward T. DeLisle
Maria L. Panichelli
Cohen Seglias Pallas Greenhall & Furman PC - Philadelphia Office

 
August 11, 2014

Previously published on July 31, 2014

If you participate in federal government procurement programs, either as a prime contractor or as a subcontractor, listen up! Your small business size status may have changed on July 14, 2014 as a result of an interim rule issued by the Small Business Administration (SBA). The rule increased revenue-based size standards for numerous industries, including general and specialty construction. The SBA has estimated that approximately 480 additional firms will now be considered “small” under the new size standards. Federal contractors and subcontractors should visit the System for Award Management (SAM) and verify that all profile and certification information are up to date based upon the revised size standards. A summary of the changes to the construction NAICS codes is set forth below.

The SBA cited inflation as the reason for the change; the last time the size standards were adjusted for inflation was back in 2008. These adjustments are in addition to the recent size standard revisions that were implemented following passage of the Small Business Jobs Act of 2010 (Jobs Act).

The rule made other changes as well, most notably:

  • An adjustment to program-based size standards, with the exception of the new alternative size standard for SBA’s 7(a) and 504 loan programs that was established under the Jobs Act. The new alternative size standard will remain in effect until SBA establishes a permanent alternative size standard for the 7(a) and 504 loan programs.

  • Deletion of references to surety bond guarantee size standards for contracts awarded in presidentially declared disaster areas following Hurricanes Katrina, Rita, and Wilma in 2005.

  • Deletion of the determination date for eligibility under the SBA’s Economic Injury Disaster Loan (EIDL) Program in connection with Hurricanes Katrina, Rita, and Wilma.

The SBA encourages contractors to review the new rule and provide feedback. The comment period closes on August 11, 2014. Additional information about small business size standards is available on the SBA’s website.

Here are the new standards for general and specialty construction:

SECTOR 23—CONSTRUCTION

Subsector 236—Construction of Buildings

NAICS Code

NAICS U.S. Industry Title

New Standard

236115

New Single-family Housing Construction (Except For-Sale Builders)

$36.5 million

236116

New Multi-family Housing Construction (Except For-Sale Builders).

$36.5 million

236117

New Housing For-Sale-Builders

$36.5 million

236118

Residential Remodelers

$36.5 million

236210

Industrial Building Construction

$36.5 million

236220

Commercial and Institutional Building Construction

$36.5 million


Subsector 237 Heavy and Civil Engineering Construction

NAICS Code

NAICS U.S. Industry Title

New Standard

237110

Water and Sewer Line and Related Structures Construction

$36.5 million

237120

Oil and Gas Pipeline and Related Structures Construction

$36.5 million

237130

Power and Communication Line and Related Structures Construction

$36.5 million

237210

Land Subdivision

$27.5 million

237310

Highway, Street, and Bridge Construction

$36.5 million

237990

but

Other Heavy and Civil Engineering Construction

$36.5 million

 

237990

Dredging and Surface Cleanup Activities

$27.5 million


Subsector 238 Specialty Trade Contractors

NAICS Code

NAICS U.S. Industry Title

New Standard

238110

Poured Concrete Foundation and Structure Contractors

$15 million

238120

Structural Steel and Precast Concrete Contractors

$15 million

238130

Framing Contractors

$15 million

238140

Masonry Contractors

$15 million

238150

Glass and Glazing Contractors

$15 million

238160

Roofing Contractors

$15 million

238170

Siding Contractors

$15 million

238190

Other Foundation, Structure and Building Exterior Contractors

$15 million

238210

Electrical Contractors and Other Wiring Installation Contractors

$15 million

238220

Plumbing, Heating and Air-Conditioning Contractors

$15 million

238290

Other Building Equipment Contractors

$15 million

238310

Drywall and Insulation Contractors

$15 million

238320

Painting and Wall Covering Contractors

$15 million

238330

Flooring Contractors

$15 million

238340

Tile and Terrazzo Contractors

$15 million

238350

Finish Carpentry Contractors

$15 million

238390

Other Building Finishing Contractors

$15 million

238910

Site Preparation Contractors

$15 million

238990

All Other Specialty Trade Contractors

$15 million

238990

Building and Property Specialty Trade Services

$15 million


SECTOR 22—UTILITIES

Subsector 221 Utilities

NAICS Code

NAICS U.S. Industry Title

New Standard

221310

Water Supply and Irrigation Systems

$27.5 million

221320

Sewage Treatment Facilities

$20.5 million

221330

Steam and Air Conditioning Supply

$15 million



 

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
 
Edward T. DeLisle
Maria L. Panichelli
 
Cohen Seglias Pallas Greenhall & Furman PC Overview