How do you define a small business? The federal government has recently changed its stance on the issue, officially increasing some of the size definitions of small businesses in certain sectors.
The U.S. Small Business Administration, which published the new guidelines earlier this month, said the changes will enable more companies to retain their small-business designation and will give the federal government a broader choice when selecting small businesses for contracts. The agency said it made an effort to "ensure that size definitions reflect current economic conditions" within the affected industries.
The changes include an increase in the agency's revenue-based size standards for 34 industries and three sub-industries. The agency estimated that as many as 8,350 additional companies nationwide will now be able to qualify for SBA programs, which include lending guarantees and other government benefits.
The agency was motivated to make the changes by the Small Business Jobs Act of 2010, which required it to conduct a comprehensive review of size standards. The agency said it expects the review to continue for several years.
For more information on the changes, and how the agency establishes its qualifications, vitist sba.org/size.
