SBA SETS NEW SMALL BUSINESS SIZE STANDARDS FOR FORWARDERS, BROKERS

SBA SETS NEW SMALL BUSINESS SIZE STANDARDS FOR FORWARDERS, BROKERS    The U.S. Small Business Administration said it will exclude “pass-through” funds in the annual gross receipts of freight forwarders and customs brokers in its determination of whether or not they qualify for small business status.
   Pass-through funds include a variety of services provided by the industry, such as freight payment to carriers and insurance. However, the gross receipts of forwarders and brokers may not exceed $5 million.
   “These revisions better define the size of business in this industry that SBA believes should be eligible for federal small business assistance programs,” the agency said. It may also result in preferential state tax treatment for forwarders and brokers, and exempt them from some regulations. The new size standard becomes effective on Sept. 8.
   “It’s good news for us,” said Jon A. Kent, Washington representative for the National Customs Brokers and Forwarders Association of America. “We’ve been after this change for several years.”
   However, the SBA has maintained the $18.5-million size standard for non-vessel-operating common carriers and household goods forwarders, because these companies generally have higher overhead costs than forwarders and brokers.