Recently, there was an amendment from the government which monitors the standards and size of small business, declaring more establishments “small”, though they are teetering on the higher end of the cap, so that they can retain their status and pursue funding.
This evaluation happens every five years. It received positive results last time around in 2014, and this year is anticipated to be no different.
The importance of size standard is that it defines the parameters of who can participate in contracts and varies by industry. Typically, size standards are based on the number of employees or amount of annual receipts.
The SBA will enforce its latest monetary and asset-based standards starting August 19, 2019.
The ‘inflation’ called for (8.4%) is really for everyone’s benefit. For businesses that are currently above the size standards, they may now be in a place of opportunity to grow via federal small business assistance programs.
In turn, Federal agencies have more candidates to choose from (a larger pool) from which to pull their procurement programs.
Bottom line, with the inflation of its standards- everyone wins! So, its good news!
The SBA is always quick to be at the aid of anyone deserving of success, and now they are again trying to gain more deserving ones under its wings. Through this adjustment the SBA anticipates 90,000 additional businesses to gain the “Small Business” title, thus becoming eligible for SBA loans and contracting programs. This expansion could ultimately result in $750 million in additional contracts and an additional 120 small business loans. The SBA is an agency that Loves to give money away (on the basis of a worthy investment, of course) and they have again reset their standards towards those whom they can give it to.
Business is exciting, so is the success of others. The SBA loan program is a perfect marriage of the two. With this expansion, more will come to benefit from what the SBA has to offer.