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US Small Business Administration Proposes Changes To Dairy Processor Size Standards

Employee-Based Standards Would Increase For Cheese Butter, Fluid Milk, Ice Cream, And Dry Dairy Manufacturers

Washington—The US Small Business Administration (SBA) this week proposed to increase small business size standards for 209 industries, including five dairy processor categories, in North American Industry Classification System (NAICS) Sector 31-33, Manufacturing.

To determine eligibility for federal small business assistance, SBA establishes small business size standards for private sector industries in the US. SBA uses two primary measures of business size: average annual receipts and average number of employees.

Over the years, SBA has received comments that its size standards have not kept up with changes in the economy, in particular the changes in the federal contracting marketplace and industry structure. The last time SBA conducted a comprehensive size standard review was during the late 1970s and early 1980s.

Rather than review all size standards at one time, SBA is reviewing size standards on a sector-by-sector basis. A NAICS sector generally includes 25 to 75 industries, except for NAICS Sector 31-33, Manufacturing, which has more than 350 industries, including five categories for various dairy processors.

In conjunction with the current comprehensive size standards review, SBA developed a “Size Standards Methodology” for developing, reviewing and modifying size standards when necessary. Since all industries in Sector 31-33 have employee-based size standards, the methodology described in the proposed rule published this week relates only to establishing employee-based size standards.

For its current size standards review, SBA has established three “base” or “anchor” size standards, one of which is 500 employees for ...more