The choice of a size measure for an industry depends on which measure best represents the magnitude of operations of a business

Due to data constraints, in most cases SBA will be unable to quantify the net impacts of size standard changes on costs of awarding Federal contracts. Under its current regulations, SBA assesses the impact of inflation on monetary based size standards at least once every twenty three years. A size standard above or below the anchor size standard will be selected within a predetermined range depending on the results of the analysis of industry and program data. The Small Business Administration (SBA) administers several programs to support small movie theaters , including the 7(a) and 504/CDC loan guaranty programs and Microloan lending program to enhance small business access to capital the Small Business Investment Company (SBIC) program to enhance small business access to venture capital contracting programs to increase small business opportunities in federal contracting direct loan programs for party supply stores , homeowners, and renters to assist their recovery from natural disasters and small business management and technical assistance training programs to assist business formation and expansion. In limited cases an additional measure of size related to production or capasuburb may be included with an employee or receipts measure. An appendix at the end of the document summarizes the detailed analytical steps involved in the evaluation of size standard for an industry.

In some cases, the Federal Government may experience lower costs on procurements reserved for small buffet restaurants through increased competition

However, the SBA also has a long established tradition of providing assistance to all qualifying small used car dealerships . Therefore, any effects of a size standard revision are likely to be insignificant. To the extent that newly eligible small comedy clubs participate in Federal small business programs, an increase in size standard may entail some additional administrative costs to the Federal Government associated with additional bidders for Federal small business procurement programs, additional firms seeking SBA guaranteed lending programs, additional firms eligible for enrollment in Central Contractor Registrations Dynamic Small Business Search database, and additional firms seeking certification as 8(a) or Historically Underutilized Business Zones (HUBZone) firms in the famous youtube video.

Because of the size of the loan guarantees, most loans are made to small souvenir shops well below the established size standards. 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 21 largest small business assistance programs.

In critiquing these, SBA has continued to believe that its historical methodology is sound and adequate because it has resulted in size standards that have been widely accepted by the public and found to be effective in providing Federal assistance to small window washing businesses . Similarly, if the gap is negative, the level of associated size standard can be increased. Congressional interest in these programs, and the SBAs assistance to small business startups in particular (defined as new car services that meet the SBAs criteria as small), has increased in recent years, primarily because these programs are viewed by many as a means to stimulate economic activity, create jobs, and assist in the national economic recovery.

In cases where a size standard is lowered, the benefits would accrue to these specific pet supply shops that retain small business status and obtain superior er assistance on average, if the level of assistance is not lowered. The Agency should also balance the public perception on what constitutes small business in deciding size standards. 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.

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 spas , without regard to the exact size of the business.

These estimates approximate the level of transfer of resources between small and large construction businesses . The SBA has indicated, from the very start of the agency, that assisting small souvenir stores create and retain jobs is part of its mission. Second, an industry size standard is established at the national level.

Credit to: http://en.wikipedia.org/wiki/Small_Business_Administration