[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
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]