Small Business Startup News
SBA Proposes To Expand 'small Business' Definition
Written by Jenna Weiner
The Small Business Administration is proposing redefining revenue-size standards for small businesses.
Throughout the recession, the U.S. Small Business Administration has taken center stage in helping owners and entrepreneurs get through tough times, entrepreneur news has noted.
Now, the federal agency is considering adjusting the size definition of small businesses in professional, scientific, technical and service sectors, the Times Record News reports.
The review will look at structural characteristics within individual industries, such as company sizes, degree of competition and where federal government contracting dollars are going. If passed, the changes would enable many small businesses to retain this classification but operate under higher size standards.
As a result, the SBA estimated that up to 9.450 additional firms would be eligible for agency funds and programs if the guidelines were adopted, the source writes. Additionally, most professional services would go from $7 million in revenue to $10 million or $14 million.
Currently, the SBA is soliciting comments from owners on what a small company constitutes to help it devise adequate guidelines for 36 of the 46 industries it is evaluating.
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