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Point and Counterpoint: My View of the SBA Size Standard Increase

Posted By Guy Timberlake, The American Small Business Coalition, LLC, Monday, February 13, 2012
It appears my blog regarding the recent change to the small business size standards has sparked some good discussion. I've received a bevy of direct messages from folks sharing their thoughts on the impact of this situation, as well as comments on LinkedIn, Facebook and Twitter.

In the interest of fairness and consideration of other views on this topic, I wanted to share comments from other industry veterans, whose opinions and insights I respect.

The following comments are paraphrased from an email I received from an associate who works for a large systems integrator:

"I feel it [the size standard increase] has many positive effects. This is very true of the National Security NAICS Code. If we [a prime contractor] give a small business a few contracts, they have blown through their NAICS Code and no longer qualify. We have to start from scratch and it has proven very painful.

I have also received many "thank goodness” type e-mails from small businesses that are not prepared to become large businesses. They are relieved that they can maintain their small business status.

We will also be able to subcontract to more small businesses as they will have more to offer us and we can bring the risk mitigation the customer desires.

It has been a long time in coming, especially for the IT size standards. This may be more of a challenge for a small business that is very small, but I think we will also see more small business set asides coming. The Administration is placing an enormous amount of pressure on the agencies to set more business aside."

These next comments are paraphrased from a current member who is an industry and military veteran whose company has been paying their dues for quite some time:

"The SBA effectively just screwed my company and every other small business that should have been able to compete this year as our direct competitors graduated out of the small business category. I reckon in 5 years they will increase the $14M to $21M or $30M - the SBA just put me and a whole lot of other truly "small" businesses out of business."

Please feel free to share your thoughts on this topic no matter which side of the fence you are on. It all counts.


The Chief Visionary

"The person who says it cannot be done should not interrupt the person doing it."

Tags:  2012  37  March 12  sba  size standard  size standard increase 

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