SBA Raises Revenue Standards for Real Estate
The U.S. Small Business Administration announced that it will be increasing the revenue standards for businesses in 58 categories, including several in real estate.
The SBA’s size standards reflect the maximum amount a firm can have to still be considered a small business. SBA periodically reviews its size standards to make sure it reflects up-to-date marketplace conditions.
Within the real estate and rental and leasing sector, SBA announced it will increase standards for 21 categories. That will allow more than 13,000 additional companies to qualify as “small” under the new size standards, which will make them eligible for SBA loan and federal procurement programs.
One of the largest size increases will be for companies that lease commercial or residential property, SBA announced. They may now have up to $25.5 million in revenue — an increase from the current $7 million ceiling.
The revenue limit for real estate agents and brokers as well as property managers also will jump considerably — from $2 million to $7 million.
The changes will go into effect Oct. 24.