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SBA Proposes To Relax Employee-Based Size Standard

Aug.03.2007

On July 27, 2007, the U.S. Small Business Administration issued a proposed rule (http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-14492.pdf) to simplify and relax the way in which it determines whether an entity complies with an employee-based size standard. Instead of the current method, which uses a rolling average of the number of employees over the previous 12 months, the proposed method is based on the average number of employees over the last three completed calendar years and will not only require less frequent updates to an entity's size status but also allow a greater number of contractors that have experienced growth in the past several years to still qualify as small.

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For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Amy Laderberg O'Sullivan
Partner – Washington, D.C.
Phone: +1 202.624.2563
Email: aosullivan@crowell.com

Marc F. Efron
Retired Partner – Washington, D.C.
Phone:
Email: mefron@crowellretiredpartners.com