ABC Seeks Input on SBA’s Standards Proposal by Oct. 28

(ABC) On Oct. 15, ABC launched an important survey to collect feedback from ABC member contractors on a U.S. Small Business Administration proposed rule that would significantly overhaul small business size standards. The SBA claims that this rulemaking would increase the small business count by over 110,000.

Background

Under NAICS code 236220 (Commercial and Institutional Building Construction), the rule proposes to convert the current receipt-based size standard of $45 million to an employee-based size standard of 600 employees. ABC members are encouraged to review the NAICS codes in the proposed rule to determine if they will be affected.

The proposed rule would also:

• Streamline the existing NAICS structure to a four-digit classification system that reduces total size standard categories from nearly 1,000 to 338 broad industry groupings, simplifying how firms determine their small business status;
• Introduce regional market considerations to ensure size thresholds accurately reflect the realities of local economic competition; and
• Increase the number of construction companies classified as small businesses by over 14,000, growing the pool of those eligible for designated small business set-asides in federal contracting.

The original comment deadline for comments was Sept. 21, and ABC led a coalition of construction industry trade associations in submitting comments that raised concerns about the SBA’s proposed approach regarding Sector 23 – Construction. However, shortly before the Sept. 21 deadline was set to close, in response to requests from ABC, other industry groups and small businesses, the SBA announced that it was extending the comment deadline to Nov. 20. ABC will now submit a supplemental comment letter.

Action Requested

ABC is asking member contractors to take the survey to help inform ABC’s response to SBA’s request for comments. Understanding the impact of these requirements on ABC members is critical. No identifying information will be used in our comments.

Please email livingston@abc.org or altman@abc.org to receive the survey. The survey will close on Oct. 28 at COB.