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as well as federal contracting and, in some instances, tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards to ensure that only small businesses receive SBA assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,037 industrial classifications in 23 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, about 97% of all employer firms qualify as small under the SBA\u2019s size standards. These firms represent about 30% of industry receipts.\nThe SBA conducts an analysis of various economic factors, such as each industry\u2019s overall competitiveness and the competitiveness of firms within each industry, to determine its size standards. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses the following legislation:\nP.L. 111-240, the Small Business Jobs Act of 2010, which authorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; established, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and required the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which directed the SBA not to limit the number of size standards and to assign the appropriate size standard to each NAICS industrial classification. This provision addressed the SBA\u2019s practice of limiting the number of size standards it used and combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nP.L. 115-324, the Small Business Runway Extension Act of 2018, which directs federal agencies proposing a size standard (and, based on report language accompanying the act, presumably the SBA as well) to use the average annual gross receipts from at least the previous five years, instead of the previous three years, when seeking SBA approval to establish a size standard based on annual gross receipts. \nLegislation introduced during recent Congresses (including H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, during the 115th Congress) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R40860", "sha1": "1899f6820188897ed2cdc7445ece0fcdb32bfd7a", "filename": "files/20191206_R40860_1899f6820188897ed2cdc7445ece0fcdb32bfd7a.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R40860", "sha1": "2af629217ad471641f1886f0b027cf1a98bb33fc", "filename": "files/20191206_R40860_2af629217ad471641f1886f0b027cf1a98bb33fc.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 603908, "date": "2019-08-21", "retrieved": "2019-08-21T22:12:58.028870", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because they have a pivotal role in determining eligibility for Small Business Administration (SBA) assistance as well as federal contracting and, in some instances, tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards to ensure that only small businesses receive SBA assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,036 industrial classifications in 23 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three (may soon be the previous five) years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, about 97% of all employer firms qualify as small under the SBA\u2019s size standards. These firms represent about 30% of industry receipts.\nThe SBA conducts an analysis of various economic factors, such as each industry\u2019s overall competitiveness and the competitiveness of firms within each industry, to determine its size standards. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 111-240, the Small Business Jobs Act of 2010, which authorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; established, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and required the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which directed the SBA not to limit the number of size standards and to assign the appropriate size standard to each NAICS industrial classification. This provision addressed the SBA\u2019s practice of limiting the number of size standards it used and combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nP.L. 115-324, the Small Business Runway Extension Act of 2018, which directs federal agencies proposing a size standard (and, based on report language accompanying the act, presumably the SBA as well) to use the average annual gross receipts from at least the previous five years, instead of the previous three years, when seeking SBA approval to establish a size standard based on annual gross receipts. \nLegislation introduced during recent Congresses (including H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, during the 115th Congress) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R40860", "sha1": "1d33cf2735ffc3cc612a07f1bac9383ae763198d", "filename": "files/20190821_R40860_1d33cf2735ffc3cc612a07f1bac9383ae763198d.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R40860", "sha1": "1857f6355f98e90b33ed707735fad05adcb1bf2e", "filename": "files/20190821_R40860_1857f6355f98e90b33ed707735fad05adcb1bf2e.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 590697, "date": "2019-02-01", "retrieved": "2019-04-17T14:24:35.361634", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because they have a pivotal role in determining eligibility for Small Business Administration (SBA) assistance as well as federal contracting and, in some instances, tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards to ensure that only small businesses receive SBA assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,036 industrial classifications in 23 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three (may soon be the previous five) years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, about 97% of all employer firms qualify as small under the SBA\u2019s size standards. These firms represent about 30% of industry receipts.\nThe SBA conducts an analysis of various economic factors, such as each industry\u2019s overall competitiveness and the competitiveness of firms within each industry, to determine its size standards. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 111-240, the Small Business Jobs Act of 2010, which authorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; established, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and required the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which directed the SBA not to limit the number of size standards and to assign the appropriate size standard to each NAICS industrial classification. This provision addressed the SBA\u2019s practice of limiting the number of size standards it used and combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nP.L. 115-324, the Small Business Runway Extension Act of 2018, which directs federal agencies proposing a size standard (and, based on report language accompanying the act, presumably the SBA as well) to use the average annual gross receipts from at least the previous five years, instead of the previous three years, when seeking SBA approval to establish a size standard based on annual gross receipts. \nLegislation introduced during recent Congresses (including H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, during the 115th Congress) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R40860", "sha1": "214cad7ff8cd2c59ac6daec636e32738b9395bb4", "filename": "files/20190201_R40860_214cad7ff8cd2c59ac6daec636e32738b9395bb4.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R40860", "sha1": "099d553417e215cb6a8dc4e758b348106e6ecdbc", "filename": "files/20190201_R40860_099d553417e215cb6a8dc4e758b348106e6ecdbc.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source_dir": "crsreports.congress.gov", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "retrieved": "2022-07-13T04:04:36.516255", "id": "R40860_84_2019-01-25", "formats": [ { "filename": "files/2019-01-25_R40860_80c85044acd93dd255e76d7053c102550476a349.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R40860/84", "sha1": "80c85044acd93dd255e76d7053c102550476a349" }, { "format": "HTML", "filename": "files/2019-01-25_R40860_80c85044acd93dd255e76d7053c102550476a349.html" } ], "date": "2019-01-25", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R40860", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 589257, "date": "2018-12-28", "retrieved": "2019-01-03T14:10:11.343190", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because they have a pivotal role in determining eligibility for Small Business Administration (SBA) assistance as well as federal contracting and, in some instances, tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards to ensure that only small businesses receive SBA assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,036 industrial classifications in 23 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, about 97% of all employer firms qualify as small under the SBA\u2019s size standards. These firms represent about 30% of industry receipts.\nThe SBA conducts an analysis of various economic factors, such as each industry\u2019s overall competitiveness and the competitiveness of firms within each industry, to determine its size standards. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 111-240, the Small Business Jobs Act of 2010, which authorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; established, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and required the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which directed the SBA not to limit the number of size standards and to assign the appropriate size standard to each NAICS industrial classification. This provision addressed the SBA\u2019s practice of limiting the number of size standards it used and combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nLegislation introduced during recent Congresses (including H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, during the 115th Congress) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "3fa32f743de17431e2839262efbcfb54a551685e", "filename": "files/20181228_R40860_3fa32f743de17431e2839262efbcfb54a551685e.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "0efffdefeca5b83b4c8792873483039de1017bca", "filename": "files/20181228_R40860_0efffdefeca5b83b4c8792873483039de1017bca.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 587411, "date": "2018-11-09", "retrieved": "2018-11-10T16:03:47.659556", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,036 industrial classifications in 23 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nLegislation introduced during the 112th Congress (H.R. 585, the Small Business Size Standard Flexibility Act of 2011), 113th Congress (H.R. 2542, the Regulatory Flexibility Improvements Act of 2013, and included in H.R. 4, the Jobs for America Act), 114th Congress (H.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, and its Senate companion bill, S. 1536), and 115th Congress (H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, and included in H.R. 5, the Regulatory Accountability Act of 2017) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "8cdb2689c71dd570fd063225c3b4a75e5ff3bc30", "filename": "files/20181109_R40860_8cdb2689c71dd570fd063225c3b4a75e5ff3bc30.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "c2f12c93ab4b187a97c2024fff9bde01c6c2a979", "filename": "files/20181109_R40860_c2f12c93ab4b187a97c2024fff9bde01c6c2a979.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 582526, "date": "2018-06-28", "retrieved": "2018-07-03T13:09:56.682842", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,037 industrial classifications in 19 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nLegislation introduced during the 112th Congress (H.R. 585, the Small Business Size Standard Flexibility Act of 2011), 113th Congress (H.R. 2542, the Regulatory Flexibility Improvements Act of 2013, and included in H.R. 4, the Jobs for America Act), 114th Congress (H.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, and its Senate companion bill, S. 1536), and 115th Congress (H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, and included in H.R. 5, the Regulatory Accountability Act of 2017) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "064dc6ca63f5f0d1f3d2d811abba8bb4190720f4", "filename": "files/20180628_R40860_064dc6ca63f5f0d1f3d2d811abba8bb4190720f4.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "a3ba5402c57204c80ffc7dbc12afbde9c3685693", "filename": "files/20180628_R40860_a3ba5402c57204c80ffc7dbc12afbde9c3685693.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 580310, "date": "2018-04-17", "retrieved": "2018-05-10T10:34:51.482109", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,037 industrial classifications in 19 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nLegislation introduced during the 112th Congress (H.R. 585, the Small Business Size Standard Flexibility Act of 2011), 113th Congress (H.R. 2542, the Regulatory Flexibility Improvements Act of 2013, and included in H.R. 4, the Jobs for America Act), 114th Congress (H.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, and its Senate companion bill, S. 1536), and 115th Congress (H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, and included in H.R. 5, the Regulatory Accountability Act of 2017) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "f87252c69fa4524344422651aaec8aca7fde2651", "filename": "files/20180417_R40860_f87252c69fa4524344422651aaec8aca7fde2651.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "7d2d45e9bda4f7983d1024ea9d12c5e4c5cb2afb", "filename": "files/20180417_R40860_7d2d45e9bda4f7983d1024ea9d12c5e4c5cb2afb.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 573483, "date": "2017-09-28", "retrieved": "2017-10-02T22:08:07.869350", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,037 industrial classifications in 19 sub-industry activities described in the 2017 North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nLegislation introduced during the 112th Congress (H.R. 585, the Small Business Size Standard Flexibility Act of 2011), 113th Congress (H.R. 2542, the Regulatory Flexibility Improvements Act of 2013, and included in H.R. 4, the Jobs for America Act), 114th Congress (H.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, and its Senate companion bill, S. 1536), and 115th Congress (H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, and included in H.R. 5, the Regulatory Accountability Act of 2017) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "56ada84adf21d5f7456bc8b119dd44be44143177", "filename": "files/20170928_R40860_56ada84adf21d5f7456bc8b119dd44be44143177.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "cd1ac17913a5c5e3d13fab6026db03a9f778ca4b", "filename": "files/20170928_R40860_cd1ac17913a5c5e3d13fab6026db03a9f778ca4b.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 462804, "date": "2017-07-21", "retrieved": "2017-08-22T13:47:57.727842", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,045 industrial classifications in 18 sub-industry activities described in the North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every five years.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.\nLegislation introduced during the 112th Congress (H.R. 585, the Small Business Size Standard Flexibility Act of 2011), 113th Congress (H.R. 2542, the Regulatory Flexibility Improvements Act of 2013, and included in H.R. 4, the Jobs for America Act), 114th Congress (H.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, and its Senate companion bill, S. 1536), and 115th Congress (H.R. 33, the Small Business Regulatory Flexibility Improvements Act of 2017, and its Senate companion bill, S. 584, and included in H.R. 5, the Regulatory Accountability Act of 2017) to authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "ee6bd51b55209d352465120590a2e2aa8a2cac75", "filename": "files/20170721_R40860_ee6bd51b55209d352465120590a2e2aa8a2cac75.html", "images": {} }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "1bd5064e7f01ec4b2030f184cfa7dd7a6a764d2c", "filename": "files/20170721_R40860_1bd5064e7f01ec4b2030f184cfa7dd7a6a764d2c.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 458015, "date": "2017-01-05", "retrieved": "2017-01-06T19:11:20.624915", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,045 industrial classifications in 18 sub-industry activities described in the North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010:\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every 5 years.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nH.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, which would have authorized the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.\nP.L. 114-328, the National Defense Authorization Act for Fiscal Year 2017, which authorizes the SBA to establish different size standards for agricultural enterprises using existing methods and appeal processes. Previously, the small business size standard for agricultural enterprises was set in statute as having annual receipts not in excess of $750,000.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "34ac421247228ed1f71184a404b05ed7c5a39f6b", "filename": "files/20170105_R40860_34ac421247228ed1f71184a404b05ed7c5a39f6b.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "106253c2f272123a4afbcff5722039aa55f7b80c", "filename": "files/20170105_R40860_106253c2f272123a4afbcff5722039aa55f7b80c.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4832, "name": "Small Business" } ] }, { "source": "EveryCRSReport.com", "id": 451922, "date": "2016-04-21", "retrieved": "2016-05-24T19:19:22.517941", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,045 industrial classifications in 18 sub-industry activities described in the North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010:\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010) and ensure that each size standard is reviewed at least once every 5 years.\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nH.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, which would authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.\nH.R. 3714, the Small Agriculture Producer Size Standards Improvements Act of 2015, which would authorize the SBA to establish size standards for agricultural enterprises not later than 18 months after the date of enactment (currently set in statute as having annual receipts not in excess of $750,000).\nH.R. 4341, the Defending America\u2019s Small Contractors Act of 2016, which would authorize the SBA to establish size standards for agricultural enterprises not later than 18 months after the date of enactment (currently set in statute as having annual receipts not in excess of $750,000) and, when establishing size standards, limit an industry category to a greater extent than provided under the North American Industry Classification codes for small business procurement purposes if further segmentation of the industry category is warranted.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "9cece9c0692937d5fa91587d1802b2ffc4294923", "filename": "files/20160421_R40860_9cece9c0692937d5fa91587d1802b2ffc4294923.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "6e9c80bab82a9b8f596c705e36059e5638d9c43b", "filename": "files/20160421_R40860_6e9c80bab82a9b8f596c705e36059e5638d9c43b.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 2636, "name": "Small Business Policy" } ] }, { "source": "EveryCRSReport.com", "id": 449123, "date": "2016-01-27", "retrieved": "2016-04-06T17:24:22.175064", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "Small business size standards are of congressional interest because the standards determine eligibility for receiving Small Business Administration (SBA) assistance as well as federal contracting and tax preferences. Although there is bipartisan agreement that the nation\u2019s small businesses play an important role in the American economy, there are differences of opinion concerning how to define them. The Small Business Act of 1953 (P.L. 83-163, as amended) authorized the SBA to establish size standards for determining eligibility for federal small business assistance. The SBA currently uses two types of size standards to determine SBA program eligibility: industry-specific size standards and alternative size standards based on the applicant\u2019s maximum tangible net worth and average net income after federal taxes.\nThe SBA\u2019s industry-specific size standards determine program eligibility for firms in 1,047 industrial classifications in 18 sub-industry activities described in the North American Industry Classification System (NAICS). The size standards are based on one of four measures: (1) number of employees, (2) average annual receipts in the previous three years, (3) average asset size as reported in the firm\u2019s four quarterly financial statements for the preceding year, or (4) a combination of number of employees and barrel per day refining capacity. Overall, the SBA currently classifies about 97% of all employer firms as small. These firms represent about 30% of industry receipts.\nThe SBA has always based its size standards on economic analysis of each industry\u2019s overall competitiveness and the competitiveness of firms within each industry. However, in the absence of precise statutory guidance and consensus on how to define small, the SBA\u2019s size standards have often been challenged, typically by industry representatives seeking to increase the number of firms eligible for assistance and by Members concerned that the size standards may not adequately target assistance to firms that they consider to be truly small.\nDuring the 111th Congress, P.L. 111-240, the Small Business Jobs Act of 2010:\nauthorized the SBA to establish an alternative size standard using maximum tangible net worth and average net income after federal taxes for both the 7(a) and 504/CDC loan guaranty programs; \nestablished, until the SBA acted, an interim alternative size standard for the 7(a) and 504/CDC programs of not more than $15 million in tangible net worth and not more than $5 million in average net income after federal taxes (excluding any carry-over losses) for the two full fiscal years before the date of the application; and\nrequired the SBA to conduct a detailed review of not less than one-third of the SBA\u2019s industry size standards every 18 months beginning on the new law\u2019s date of enactment (September 27, 2010).\nThis report provides a historical examination of the SBA\u2019s size standards and assesses competing views concerning how to define a small business. It also discusses\nP.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013, which requires the SBA to make available a justification when establishing or approving a size standard that the size standard is appropriate for each individual industry classification. It addresses the SBA\u2019s recent practice of combining size standards within industrial groups as a means to reduce the complexity of its size standards and to provide greater consistency for industrial classifications that have similar economic characteristics. \nH.R. 527, the Small Business Regulatory Flexibility Improvements Act of 2015, which would authorize the SBA\u2019s Office of Chief Counsel for Advocacy to approve or disapprove a size standard requested by a federal agency for purposes other than the Small Business Act or the Small Business Investment Act of 1958. The SBA\u2019s Administrator currently has that authority.\nH.R. 4341, the Defending America\u2019s Small Contractors Act of 2016, which would authorize the SBA to establish size standards for agricultural enterprises not later than 18 months after the date of enactment (currently set in statute as having annual receipts not in excess of $750,000) and, when establishing size standards, limit an industry category to a greater extent than provided under the North American Industry Classification codes for small business procurement purposes if further segmentation of the industry category is warranted.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R40860", "sha1": "c171b0ebc9fd9d1d4a9baf6dfe0ec6c7ec94e455", "filename": "files/20160127_R40860_c171b0ebc9fd9d1d4a9baf6dfe0ec6c7ec94e455.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R40860", "sha1": "985202a00b4eee77962e60938894029fc6bd216c", "filename": "files/20160127_R40860_985202a00b4eee77962e60938894029fc6bd216c.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 2636, "name": "Small Business Policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc808261/", "id": "R40860_2015Feb02", "date": "2015-02-02", "retrieved": "2016-03-19T13:57:26", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20150202_R40860_435ef1992297358d65df52198e12211534831db1.pdf" }, { "format": "HTML", "filename": "files/20150202_R40860_435ef1992297358d65df52198e12211534831db1.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc463081/", "id": "R40860_2014Jan03", "date": "2014-01-03", "retrieved": "2014-12-05T09:57:41", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "This report provides a historical examination of the Small Business Administration's SBA size standards, and assesses competing views concerning how to define a small business. It also discusses H.R. 585, the Small Business Size Standard Flexibility Act of 2011, which would have authorized the SBA's Office of Chief Counsel for Advocacy to approve or disapprove a size standard proposed by a federal agency if it deviates from the SBA's size standards.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20140103_R40860_9af37124d40ae7abbeb3bfb7bfa57fb833d30b5c.pdf" }, { "format": "HTML", "filename": "files/20140103_R40860_9af37124d40ae7abbeb3bfb7bfa57fb833d30b5c.html" } ], "topics": [ { "source": "LIV", "id": "Business", "name": "Business" }, { "source": "LIV", "id": "Government and business", "name": "Government and business" }, { "source": "LIV", "id": "Small business", "name": "Small business" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc462695/", "id": "R40860_2012Dec06", "date": "2012-12-06", "retrieved": "2014-12-05T09:57:41", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "This report provides a historical examination of the SBA's size standards, assesses competing views concerning how to define a small business, and discusses how the Small Business Jobs Act of 2010 might affect program eligibility. It also discusses H.R. 585, the Small Business Size Standard Flexibility Act of 2011, which would authorize the SBA's Office of Chief Counsel for Advocacy to approve or disapprove a size standard proposed by a federal agency if it deviates from the SBA's size standards.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20121206_R40860_ed730b214a519ccd83de7edb29a1452b7e928d02.pdf" }, { "format": "HTML", "filename": "files/20121206_R40860_ed730b214a519ccd83de7edb29a1452b7e928d02.html" } ], "topics": [ { "source": "LIV", "id": "Business", "name": "Business" }, { "source": "LIV", "id": "Government and business", "name": "Government and business" }, { "source": "LIV", "id": "Small business", "name": "Small business" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc122193/", "id": "R40860_2012Oct04", "date": "2012-10-04", "retrieved": "2012-11-30T09:28:34", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": "This report provides a historical examination of the Small Business Administration's (SBA) size standards, assesses competing views concerning how to define a small business, and discusses how various proposals to change the SBA's size standards -- including those adopted under the Small Business Jobs Act of 2010 -- might affect program eligibility. It also discusses H.R. 585, the Small Business Size Standard Flexibility Act of 2011, which would authorize the SBA's Office of Chief Counsel for Advocacy to approve or disapprove a size standard proposed by a federal agency if it deviates from the SBA's size standards.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20121004_R40860_762bf09c1b7bc07f90901457d5dbdf4f50f1d47f.pdf" }, { "format": "HTML", "filename": "files/20121004_R40860_762bf09c1b7bc07f90901457d5dbdf4f50f1d47f.html" } ], "topics": [ { "source": "LIV", "id": "Business", "name": "Business" }, { "source": "LIV", "id": "Small business", "name": "Small business" }, { "source": "LIV", "id": "Government and business", "name": "Government and business" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc811687/", "id": "R40860_2012Apr10", "date": "2012-04-10", "retrieved": "2016-03-19T13:57:26", "title": "Small Business Size Standards: A Historical Analysis of Contemporary Issues", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120410_R40860_58b824d958f2d0ac38c8854d49601cc294173080.pdf" }, { "format": "HTML", "filename": "files/20120410_R40860_58b824d958f2d0ac38c8854d49601cc294173080.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc814740/", "id": "R40860_2012Feb10", "date": "2012-02-10", "retrieved": "2016-03-19T13:57:26", "title": "Defining Small Business: A Historical Analysis of Contemporary Issues", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20120210_R40860_201b4e8786d9b6dff24841586a29a2488110f93a.pdf" }, { "format": "HTML", "filename": "files/20120210_R40860_201b4e8786d9b6dff24841586a29a2488110f93a.html" } ], "topics": [] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc812512/", "id": "R40860_2009Oct15", "date": "2009-10-15", "retrieved": "2016-03-19T13:57:26", "title": "Defining Small Business: An Historical Analysis of Contemporary Issues", "summary": null, "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20091015_R40860_111acf558b90372b82d49959b28e998ce57fd55e.pdf" }, { "format": "HTML", "filename": "files/20091015_R40860_111acf558b90372b82d49959b28e998ce57fd55e.html" } ], "topics": [] } ], "topics": [ "American Law", "Economic Policy", "National Defense" ] }