Earlier this month, the U.S. Small Business Administration proposed changing what is considered a “small” business for several different industries within the transportation and warehouse sectors, as outlined in this press release. The proposal is more than just bureaucratic busy work, as businesses that can call themselves “small” are eligible for federal assistance, such as SBA loans and other programs. Those that exceed the limit are left out.

Case in point: Taxi services currently are considered small only if they bring in no more than $7 million; that would change to $14 million under the proposal. The same holds true for the charter bus industry. Marine cargo handling firms could ring up $35.5 million and still qualify as small, versus $25.5 million today.

A review of the standards seems appropriate, given many of the current ones have been in place for decades. A white paper from 2009, “SBA Size Standards Methodology,” identifies three “base” or “anchor” sizes used as common size standards for a range of industries having similar economic characteristics and act as reference points in evaluating size standards for individual industries. These are: $7.0 million in annual receipts for most nonmanufacturing firms; 500 employees for manufacturing, mining and other industries whose size is based on the number of employees, other than whole trade; and 100 employees for wholesale trade companies. The 500-employee standard for manufacturers has been in place since the 1950s, while the 100-employee standard for wholesale trade has been around since the 1980s.

The proposed changes “take into account the structural characteristics within individual industries, including average firm size, the degree of competition, and federal government contracting trends to ensure that size definitions reflect current economic conditions within those industries,” the SBA said in the release. In addition, the Small Business Jobs Act of 2010 instructed the SBA to conduct a detailed review of its size standards and make any changes needed to reflect current market conditions, according to the SBA’s proposal in the Federal Register.

If you’re interested in submitting comments on the proposed changes, you can do so through the Federal e-Rulemaking Portal at www.regulations.gov. Comments will be accepted until July 12.