SBA Seeks to Revise Size Definitions For Certain Small Businesses
An SBA proposal to revise the size of small businesses in several sectors, including finance and insurance, could potentially allow 12,900 firms to be eligible for the agency’s loan programs.
The SBA said it has proposed increasing 32 revenue-based size standards and give asset-based size standards in the finance and insurance sector.
More than 2,000 additional financial institutions would qualify as small if the revised asset-based size standards are adopted, the agency said. This includes 25 minority-owned financial institutions that could become eligible to participate in subcontracting agreements with prime contractors for subcontracting goals and credits.
In addition, the agency is also seeking to increase two size standards in the management of companies and enterprises sector as well as how it measures the size of international trade financing firms from average assets to average revenues.
The SBA estimated that more than 5,400 additional firms in these last two sectors will become eligible for its loans and federal procurement programs under the revised revenue-based size standards, if adopted.
Increasing 11 size standards in the agriculture, forestry, fishing and hunting sector has also been proposed. If adopted, up to 7,500 more firms in this sector would also be eligible for the SBA’s programs.
Comments can be submitted on these proposed rules on or before Nov. 13 at www.regulations.gov.