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.
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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.