This analysis may indicate a size standard larger than the current standard

If firms entering an industry under review have honest er capital requirements than firms do in industries in the anchor comparison group, all factors remaining the same, this would be a basis for supporting a size standard higher than the anchor standard. For example, detailed industry data are available only once every 5 years. The SBA has indicated, from the very start of the agency, that assisting small moving businesses create and retain jobs is part of its mission. The potential distributional impacts of these transfers may not be estimated with any degree of precision because the available data on the size of business receiving a Federal contract are limited to identifying small or other than sm all convenience stores , without regard to the exact size of the business. Data limitations preclude an extensive analysis of graphic design businesses on a geographical basis. SBA believed it could not justify such large variations, and therefore, limited the final rule to adjusting the then existing receipts based size standards for inflation.

Also because of changes in the industry classification systems and resultant inconsistencies in industry data over time, inclusion of this factor in the size standard is quite limited

SBA makes adjustments to its monetary based size standards when necessary. Firms receiving Federal contracts are likely to possess different characteristics than the average characteristics for all firms in that industry. For a limited number of industries, SBA has established size measures based on other business characteristics in the video reviewing business cash advance.

SBA conducts a statistical analysis of data on the primary factors, and secondary factors as appropriate, to establish a size standard for a specific industry. In 1992, SBA proposed, along with an inflation adjustment, a reduction in the number of size standard levels from more than forty different levels to 23 receipts based size standards and 19 employee based size standards.

Similarly, verified Federal contacting data usually have least 20 year time lag. This document includes an extensive discussion of the statistical analyses involved in size standards determination. First, if a size standard is raised, there would likely be a transfer of some Federal contracts from large coffee shops to small bars .

In establishing size standards, the Act and its legislative hi story highlight 15 considerations. The Agency feels that a size standard methodology must focus on identifying bar and grills that are in need of assistance as opposed to what level of assistance is provided under a particular program. Fourth, the necessary data to evaluate the size standards are not available on a timely basis.

SBA will also estimate the impact that may result from a revised size standard on small business preference programs of Federal contracting and the SBAs 7(a) Business Loan Program the four largest small business assistance programs.

Similarly, the determination of not dominant in its field of operation is also done at the national level. The frequent adjustment of size standards under this approach would create a high level of uncertainty among small restaurants and overwhelm the regulatory process. Under SBAs 7(a) Guaranteed Loan Program, revising a size standard will likely result in only a small change in small business guaranteed loans.

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This analysis may indicate a size standard larger than the current standard