The Small Business Administration (SBA) issued a final rule increasing small business size standards for several industries, including commercial banks. The rule increases the size standard from $175 million in assets to $500 million.
The ABA-supported change will enable more community banks to benefit from provisions that require federal agencies to assess and minimize regulatory costs on small entities under the Regulatory Flexibility Act and the Small Business Regulatory Enforcement and Flexibility Act.
In addition, the CFPB uses SBA size standards to identify small banks eligible to serve as “small entity representatives” during the SBREFA review process. The change will allow more community banks to participate.
Read the rule.