[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR121.102]



[Page 288-289]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 121_SMALL BUSINESS SIZE REGULATIONS--Table of Contents

 

           Subpart A_Size Eligibility Provisions and Standards

 

Sec. 121.102  How does SBA establish size standards?



    (a) SBA considers economic characteristics comprising the structure 

of an industry, including degree of competition, average firm size, 

start-up costs and entry barriers, and distribution of firms by size. It 

also considers technological changes, competition from other industries, 

growth trends, historical activity within an industry, unique factors 

occurring in the industry which may distinguish small firms from other 

firms, and the objectives of its programs and the impact on those 

programs of different size standard levels.

    (b) As part of its review of a size standard, SBA will investigate 

if any concern at or below a particular standard would be dominant in 

the industry. SBA will take into consideration market share of a concern 

and other appropriate factors which may allow a concern to exercise a 

major controlling influence on a national basis in which a number of 

business concerns are engaged. Size standards seek to ensure that a 

concern that meets a specific size standard is not dominant in its field 

of operation.

    (c) As part of its review of size standards, SBA's Office of Size 

Standards will examine the impact of inflation on monetary-based size 

standards (e.g., receipts, net income, assets) at least once every five 

years and submit a report to



[[Page 289]]



the Administrator or designee. If SBA finds that inflation has 

significantly eroded the value of the monetary-based size standards, it 

will issue a proposed rule to increase size standards.

    (d) Please address any requests to change existing size standards or 

establish new ones for emerging industries to the Assistant 

Administrator for Size Standards, Small Business Administration, 409 3rd 

Street, SW., Washington, DC 20416.



[61 FR 3286, Jan. 31, 1996, as amended at 67 FR 3045, Jan. 23, 2002]