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Small Business Definitions Should be Changed, SBA Proposes
Mar 18, 2011, 03:39 AM
Read our article, 'Small Business Definitions Should be Changed, SBA Proposes' at 'Time to Start Up,' the small business blog by BizFilings.
Small business filings may be stimulated if a new proposal by the U.S. Small Business Administration is passed. Published via The Federal Register, the proposal calls for a broadening of small business definitions in order to widen access to federal programs among the private sector.
According to the release, some 9,450 additional companies would be eligible to receive public grants, contracts and programs if definitions were altered to what the SBA is proposing.
In accordance with last year's Small Business Jobs and Credit Act, the SBA is required to reconsider size-standards as markets and economic conditions shift, but prior to 2007, the last time definitions were reviewed was in the mid-1980s.
Currently, definitions are arranged by revenue - or receipts - and number of employees, as well as varying industry factors.
The break down is, "$7 million in average annual receipts for industries that have receipts-based size standards, 500 employees for manufacturing and other industries that have employee-based size and 100 employees for industries in the wholesale trade sector," The Street reports.