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SMALL BUSINESS NEWS

1 Nov 2014

 

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The SBA Wants To Increase Small Business Size Standards

If you’re a small business in one of these industries this could impact your business. 

The SBA is currently conducting a review of the size standards of industries grouped by North American Industry Classification System (NAICS) code.

As part of that review process the SBA has issued a proposed rule to increase small business size standards for 209 industries in North American Industry Classification System (NAICS) Sector 31-33, Manufacturing.

The last time SBA conducted a comprehensive size standards review was during the late 1970s and early 1980s.

The small business size definition is critical to small businesses when applying for SBA loans.  If a small business does not fit into the SBA’s definition of a small business based on their NAICS code they will not qualify for small business loans.  Increasing the size standards would reclassify some businesses as small businesses and make them eligible for SBA loans.

Industries are measured differently depending on the products and services they provide.  SBA uses two primary measures of business size—average annual receipts and average number of employees. SBA uses financial assets, electric output, and refining capacity to measure the size of a few specialized industries.

You have an opportunity to let the SBA know whether or not you agree with the proposed rule by providing comments.  You have until 10 November 2014 to provide comments.  To provide comments visit The SBA’s Proposed Rule page.

Sources:
The SBA’s Proposed Rule page

 


By Jack Rivers

 

 

 

 

 

 

 

 

 

 
 

 

  
 

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