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Thin is In

With new rules, the SBA hopes to cut big companies from its procurement numbers.

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This story appears in the April 2005 issue of Entrepreneur. Subscribe »

The is cutting the fat from small- . The changes would prevent that have grown large, or have been acquired by , from continuing to be counted as small businesses by federal agencies when reporting procurement data.

A study by the SBA's Office of Advocacy published last December found that, of the $54.1 billion in federal procurement funds supposedly paid to small businesses in 2002, $2 billion actually went to big businesses. Among the tubbies was Raytheon Co., which the Office of Advocacy said won small-business contracts worth $126.7 million.

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