The Small Business Administration has issued a proposed rule to increase small business size standards for several industries under the North American Industry Classification System, including the truck renting and leasing industry.

The proposed rule would raise the current size standard from $25.5 million to $35.5 million in annual gross revenue for section 532120 - the truck, utility trailer, and RV (recreational vehicle) rental and leasing industry.

The SBA uses these size standards to determine eligibility for Federal small business assistance and other government programs for small businesses. By increasing the size standards, it creates the opportunity for businesses that have surpassed or may be about to surpass the decades-old threshold to be considered a small business again for the purposes of Federal small business loans and government contracts.

The last time the SBA conducted a comprehensive review of size standards was in the late 1970s/early 1980s, and this review of 20 industries and one sub-industry by SBA is required as part of the Small Business Jobs Act of 2010. The SBA generally uses five factors when analyzing a specific industry which include average firm size, startup costs and entry barriers, industry competition, distribution of firms by size, and the impact on Federal contracting and SBA loan programs. The SBA attempts to gauge the impact that changing current size standards would have on Federal contracting assistance to small businesses by considering current economic conditions, the Administration's policies, and input from industry groups and Federal agencies.

The SBA used data from the 2007 economic census when considering this proposed rule. The economic census contains information about the number of firms, number of establishments, number of employees, annual payroll, and annual receipts of an industry.

The SBA is accepting comments on the proposal until January 17, 2012. To view the Small Business Administration's size standards proposed rule published in the November 15 Federal Register, click here.

For more information, contact TRALA's Joe Sculley at or (703) 299-9120.