DATE: July 1, 2004

SUBJECT: Small Business Administration; Withdrawal of Proposed Small Business Size Standards Restructuring

SOURCE: Federal Register, July 1, 2004, Vol. 69, No. 126, page 39874

AGENCIES: Small Business Administration (SBA)

ACTION: Withdrawal of Proposed Rule

SYNOPSIS: The SBA is withdrawing the March 19, 2004, proposed rule that would have replaced most of the receipts-based small business size standards with size standards based on the number of employees of a business concern.

EDITOR'S NOTE: For more on the proposed rule being withdrawn, see the March 19, 2004, FEDERAL CONTRACTS DISPATCH "Small Business Administration (SBA); Restructuring of Small Business Size Standards."

The SBA's regulations are in Title 13 of the Code of Federal Regulations (CFR). The SBA small business size regulations are in Chapter 1, Small Business Administration; Part 121, Small Business Size Regulations; Subpart A, Size Eligibility Provisions and Standards; Section 121.201, What size standards has SBA identified by North American Industry Classification System codes?

A complete listing of current size standards is available at SBA's Size Standards website at http://www.sba.gov/size/sizetable2002.html, or by calling 202-205-6618 and requesting a copy of the table of size standards.

DATES: The proposed rule is withdrawn effective July 1, 2004.

FOR FURTHER INFORMATION CONTACT: Gary M. Jackson, Assistant Administrator for Size Standards, 202-205-6464, or gary.jackson@sba.gov.

SUPPLEMENTAL INFORMATION: On March 19, 2004, SBA published a proposed rule to restructure its small business size standards. The proposed rule would have simplified the size standards by establishing "number of employees" as the basis for determining size, and deleting "average annual receipts" as the basis for determining size, primarily in service industries. In making this change, SBA would reduce the number of individual size standard levels from 37 to 10.

SBA received over 3,700 comments on the proposed changes. Although many of those comments support aspects of the proposal, a number raised concerns about SBA's methodology for developing the proposed size standards, the effect the proposed size standards will have on existing small businesses, the determination of the employee size of a business, and SBA's proposed overall approach to simplifying the size standards. SBA believes that "further review of these issues may result in substantive changes from the proposal," so it is withdrawing the proposed rule. Once SBA completes its review of the comments, SBA intends to issue an Advance Notice of Proposed Rulemaking (ANPRM) to collect additional information on the issues raised by the comments on the proposed rule, then decide what, if any, further actions are necessary. If SBA decides to take further actions, it will issue appropriate notices of proposed rulemaking.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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