Inc.com reports that the Small Business Administration this week made some 17,000 more businesses eligible for its loans, preferential treatment for federal contracts and other programs.
The businesses now qualify thanks to changes the SBA made to its size definition of “small business” in the retail, hospitality, restaurants and “other services” industries. The changes are part of a multi-year SBA effort to update the rules, which vary from industry to industry and haven’t been touched since a late 1970s/early ’80s overhaul. The new rules — which take effect Nov. 5 — were published in the Federal Register.
“These increases in the size standards mean more of America’s small businesses will be eligible for and can access the resources and services the SBA and other federal agencies have available,” SBA administrator Karen Mills said. “This comprehensive review is aimed at making sure the factors that determine eligibility are aligned with current economic and industry indicators, and ensure that small businesses across the country have the tools they need to drive economic growth and create jobs.”
One of the biggest winners in the expanded definition is new car dealers, an extra 5,700 of whom will now qualify for SBA programs. The definition of “small” for that industry is now not more than 200 workers, as opposed to the previous definition of maximum annual sales of $29 million.
Photo by flatplanet.