On February 15, SBA issued a Final Rule, Small Business Size Standards: Adjustment of Alternative Size Standard for SBA’s 7(a) and CDC/504 Loan Programs for Inflation; and Surety Bond Limits: Adjustments for Inflation (89 FR 11703). The rule, which takes effect on March 18, 2024, amends 13 CFR 121.301 to state that under the alternative size standard, a business, including any affiliates, will be considered small if its tangible net worth is not in excess of $20 million (up from $15 million), and its average net income after Federal income taxes (excluding any carry over losses) for the preceding two completed fiscal years is not in excess of $6.5 million (up from $5 million). As described in the Final Rule, this change represents a 34.46 percent adjustment for inflation that has occurred since the establishment of the statutory alternative size standard in 2010.
Please see the Final Rule for additional details and for information regarding additional changes affecting SBA’s Surety Bond program.
