The SBA has recently proposed to change what defines a company as a small business for 29 industries and one sub-industry. These industries belong to two NAICS categories: “Real Estate and Rental and Leasing” and “Educational Services.” Typically the size for these industries is defined by the total revenue that they generate over the span of three years. Should the amount exceed the current standard then the company no longer qualifies as a small business. The SBA has proposed to increase the amount which qualifies these industries as small businesses due to the changing economy. The current standard was first issued 25 years ago and it has not changed since then, regardless of the ever-changing economy.
By increasing the standard it, would allow for small companies to maintain their small business status while allowing new businesses to qualify and have access to SBA loans. Should this proposal be accepted, it could show to be highly beneficial for the affected industries and also fur the businesses which aid with SBA loans, such as CDCs, banks, and environmental professionals.
Below is a table provided by the SBA’s newsroom posting on this subject. The table displays the two categories and their industries which are proposed to be changed. This proposal is currently posted for commentary on their website.
NAICS Sector 53 – Real Estate and Rental and Leasing:
| NAICS codes | NAICS Industry titles | Current size standard ($ million) | Proposed size standard ($ million) |
| 531110 | Lessors of Residential Buildings and Dwellings | $7.0 | $25.5 |
| 531120 | Lessors of Nonresidential Buildings (except Miniwarehouses) | $7.0 | $25.5 |
| 531190 | Lessors of Other Real Estate Property | $7.0 | $25.5 |
| Except, | Leasing of Building Space to Federal Government by Owners | $20.5 | $35.5 |
| 531210 | Offices of Real Estate Agents and Brokers | $2.0 | $7.0 |
| 531311 | Residential Property Managers | $2.0 | $7.0 |
| 531312 | Nonresidential Property Managers | $2.0 | $7.0 |
| 531320 | Offices of Real Estate Appraisers | $2.0 | $7.0 |
| 531390 | Other Activities Related to Real Estate | $2.0 | $7.0 |
| 532111 | Passenger Car Rental | $25.5 | $35.5 |
| 532112 | Passenger Car Leasing | $25.5 | $35.5 |
| 532120 | Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing | $25.5 | $35.5 |
| 532210 | Consumer Electronics and Appliances Rental | $7.0 | $35.5 |
| 532220 | Formal Wear and Costume Rental | $7.0 | $19.0 |
| 532230 | Video Tape and Disc Rental | $7.0 | $25.5 |
| 532291 | Home Health Equipment and Rental | $7.0 | $30.0 |
| 532411 | Commercial, Air, Rail, and Water, Transportation Equipment and Rental | $7.0 | $30.0 |
| 532412 | Construction, Mining and Forestry Machinery and Equipment Rental and Leasing | $12.5 | $30.0 |
| 532420 | Office Machinery and Equipment Rental and Leasing | $25.5 | $30.0 |
| 532490 | Other Commercial, and Industrial Machinery and Equipment Rental and Leasing | $7.0 | $30.0 |
| 533110 | Lessors of Nonfinancial Intangible Assets (except Copyrighted Works) | $7.0 | $35.5 |
NAICS Sector 61 – Educational Services:
| NAICS code | NAICS industry title | Current size standard ($ million) | Proposed size standard ($ million) |
| 611110 | Elementary and Secondary Schools | $7.0 | $10.0 |
| 611210 | Junior Colleges | $7.0 | $19.0 |
| 611310 | Colleges, Universities and Professional Schools | $7.0 | $25.5 |
| 611420 | Computer Training | $7.0 | $10.0 |
| 611430 | Professional and Management Development Training | $7.0 | $10.0 |
| 611519 | Other Technical and Trade Schools | $7.0 | $14.0 |
| 611630 | Language Schools | $7.0 | $10.0 |
| 611699 | All Other Miscellaneous Schools and Instruction | $7.0 | $10.0 |
| 611710 | Educational Support Services | $7.0 | $14.0 |