SBA proposes rewriting who counts as a small business
The agency wants to redefine its size standards. Some firms say the new definition would mean nothing at all.
The US Small Business Administration has proposed a revision to its small-business size standards.
Those standards decide which firms can bid for contracts set aside for small businesses, and which can borrow under the agency's loan programmes. Change the standards and you change the list of companies allowed through the door.
The proposal has drawn objections. Some companies argue that it would render the definition of a small business meaningless, according to accounts of the consultation.
The agency has not published the revised thresholds in the material available to readers here, and the objecting companies have not been named.
For a founder, the practical question is narrow and financial. If your firm sits near the current cut-off, the revision decides whether you keep competing in a pool reserved for small companies or start competing against much larger ones.
The reverse also matters. A looser standard lets bigger firms into set-aside competitions, which thins the odds for everyone already in them.
Anyone who relies on federal contracting revenue or SBA-backed credit should read the proposal when the thresholds are confirmed, and file a comment before the consultation closes.