Redefining Small Business

The SBA has recently proposed revisions that would make a few adjustments to the definition for small business. This change would adjust the revenue-based size definition that a business needs to meet if they want to fall under this category, reports Times Record News.

As part of its ongoing comprehensive review of all size standards, the SBA evaluated 46 industries and three sub industries in these sectors.

The SBA’s size standards vary from industry to industry to account for differences among them.

The proposed changes take into account the structural characteristics within individual industries, including average firm size, the degree of competition, and federal government contracting trends to ensure that size definitions reflect current economic conditions within those industries.

The changes would allow some small businesses that are close to exceeding their current size standards to retain small-business eligibility under higher size standards, giving federal agencies a larger selection of small businesses to choose from for small business procurement opportunities.

The SBA estimates as many as 9,450 additional firms will become eligible for SBA programs as a result of the proposed revisions, if they are adopted.

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