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SBA Updates Size Standards for Computer Services

The Small Business Administration (SBA) announced its final rule concerning size standards for “Computer Systems Design and Related Services,” on February 10th. Generally, businesses classified under this category (NAICS 5415) will be considered a small business provided their annual receipts do not exceed $25.5 million, up from $25 million. The SBA size standard is the main criteria for determining whether a business qualifies for SBA and other government programs and benefits.

Types of businesses included under this general heading include:

  • Custom computer programming,
  • Computer systems design services,
  • Computer facilities management services, and
  • Other computer-related services (except information).

This change did not affect the definition of an “Information Technology Value Added Reseller” (NAICS code 541519) which remains at 150 employees for those companies whose products consists of at least 15 percent and not more the 50 percent of value added services (as measured by the total price less the cost of information technology hardware, computer software and profit).

This rule change has been under consideration for some time. The initial proposed rule was announced in March of 2011.