U.S. SBA PROPOSES NEW SIZE STANDARDS FOR BROKERS, FORWARDERS

   The U.S. Small Business Administration has issued proposed rules for
when to classify a freight transportation company as a small business.
   The agency says it wants to reduce its current classification threshold
between large and small businesses in the cargo industry from $18.5 million
to $5 million.
   The SBA’s proposed rules would also give brokers, forwarders and
non-vessel-operating common carriers the ability to exclude "pass-through"
funds on gross receipts. Pass-through funds include a variety of industry
services, such as insurance, packing and inland transportation.
   A small business status allows firms to participate in many government
contracting programs and exempts them from some regulations. It may also
result in preferential state tax treatment.
   Travel agents and real estate agents have enjoyed these privileges since
1989. The National Customs Brokers and Forwarders Association of America says it wants similar treatment from the SBA. "We’re basically the travel agents for freight," said Peter Powell Sr., president of the
Washington-based industry group.
   NCBFAA members are encouraged to send their comments to the association by Aug. 23. The deadline for responding to the SBA’s proposed rules is Sept. 24.