Committee on Design

  • 1.  Architeture Firm Qualification as SBA Small Business

    Posted 03-23-2011 06:15 PM


    The SBA is considering raising the annual revenue level for qualifying architectural firms as "small business" from $4.5 million to $19 million per year. I recognize even the lower revenue is far above what most of our architectural practices generate, but the SBA is totaly out of touch.
    The Atlanta Business Chronicle 2011 lists "Atlanta's Top 25 Architectural Firms" by 2009 Atlanta Gross Architectural Revenue. Twenty of the Top Twenty-Five Firms listed would qualify as "small businesses" under the proposed new SBA definition of small business. These twenty "small businesses" employ an average of 51 persons in their Atlanta offices alone (and some have as many as 1,600 nationally). These are hardly "small businesses" when the size of an AVERAGE architecture firm is six (yes, 6) persons. So much for helping the small business. 
     
    The same Atlanta Business Chronicle 2011 also lists "Atlanta's Top 25 Architectural Firms" by 2009 COMPANY WIDE revenues and fifteen (15) of the Top 25 still would qualify as "small businesses". In other words, there are only ten (count 'em,10) architectural firms in Atlanta that DO NOT qualify as an SBA "small business". These firms average sixty (60) employees. 
     
    The propsed new SBA definition of a small business for the architecture profession is beyond ridiculous. Where is the AIA in all of this? Is this the help for small business Obama has been promising?. With the layoffs in the larger firms, the pool of architects in the category of "single practioners in firms of 5 or less" is INCREASING. Hardly a time to change the standards SBA.

    If you want to read more about this, here is the link:
    <A href="http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Ewashingtonpost%2Ecom%2Fbusiness%2Feconomy%2Fsmall-business-administration-moves-to-let-more-companies-qualify-as-small%2F2011%2F03%2F17%2FABg2Vt2_story%2Ehtml&urlhash=Ad_a&_t=tracking_disc">http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Ewashingtonpost%2Ecom%2Fbusiness%2Feconomy%2Fsmall-business-administration-moves-to-let-more-companies-qualify-as-small%2F2011%2F03%2F17%2FABg2Vt2_story%2Ehtml&urlhash=Ad_a&_t=tracking_disc</A>-------------------------------------------

    Gordon Burns AIA
    CEO
    Gordon Burns & Associates, P.C.
    Atlanta GA
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    24.06.07 CODAIA24


  • 2.  Architectural Services Data related SBA

    Posted 04-05-2011 09:09 AM
      |   view attached
    Please find attached some quick data on the size of the profession in terms of sales/receipt/revenue and billings. One major source of the data is from the U.S. Census Bureau Survey of Business Owners. The other from the 2009 AIA Firm Survey (the next report will be conducted in 2012).

    If there are any quesiton, please do not hesitate to contact me at jchu@aia.org or (202) 626-8045.

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    James Chu
    Director, Research
    The American Institute of Architects
    Washington DC
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    Attachment(s)

    24.06.07 CODAIA24


  • 3.  Small Business Size Standards: SBA Seeks Input by May 16

    Posted 04-12-2011 02:02 PM

    Gordon,

    The following article was posted in a special edition The Angle.  I encourage all of you to participate in the discussion, and submit comments to both the SBA and the AIA.

    The U.S. Small Business Administration (SBA) has proposed new size standards for what defines an architecture small business, leading to potentially large impacts on many design firms across the country.

    The SBA has said that they are trying to simplify the regulatory process and combine what they consider to be similar professions into a single standard. The SBA is proposing to change the size standards for architecture firms from $4.5 million in annual net revenue to $19 million. As of 2009, just over 90 percent of architecture firms qualified as an SBA small business under the $4.5 million threshold based on their billings. Under a $19 million standard, that percentage would rise to nearly 98 percent.

    The SBA is accepting public comments on their proposed rule until May 16, 2011.The AIA also seeks input from its members about the impact of these proposed changes. Members can comment at the AIA's LinkedIn or Facebook sites to get the conversation started. The AIA also has launched a resource page on the SBA proposal, on which you can find additional information, data, and instructions on submitting comments directly to the SBA.

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    Adam Melis
    Director, Advocacy Outreach
    The American Institute of Architects
    Washington DC
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    24.06.07 CODAIA24