As published in the Federal Register on Thursday, February 15, 2024, SBA has announced its Final Rule on Alternative Size Standard for the CDC/504 and 7(a) Loan Programs, effective March 18, 2024. According to the Register, the new Size Standard makes an adjustment for inflation that has occurred since the Statutory Alternative Size Standard was established in 2010.
The inflation adjustment increases tangible net worth to not more than $20 million and net income to not more than $6.5 million in average income after federal income taxes (excluding any carryover losses) for the preceding two completed fiscal years for the applicant and its affiliates.
There is no change in industry size standards. These vary from industry to industry and are mostly based on the average annual receipts or the average number of employees. of the applicant business and its affiliates.