Good Measure
The SBA is looking for new ways to size up small businesses.
Size matters. So says the SBA in its proposed rule to bringsmall-business size standards into the 21st century. The standardssay whether an entrepreneur qualifies for SBA programs and are mostimportant with respect to eligibility for 7(a) loans andsmall-business set-aside contracts offered by other federalagencies.
Now the agency has 30 size standards based on annual receipts,five on number of employees and two on other measures. The agencywants to eliminate almost all the annual receipts categories andestablish 10 employee size categories, an increase from the currentfive. Thirty-one industries, including construction andengineering, would also have to meet size standards based onaverage receipts. Says SBA administrator Hector V. Barreto,"Small-business owners have told us that the current system isdifficult for [them] to understand."
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