The SBA Wants To Increase Small Business Size Standards |
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If you’re a small business in one of these industries this
could impact your business.
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The SBA is currently conducting a review of the size
standards of industries grouped by North American Industry
Classification System (NAICS) code.
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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.
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The last time SBA conducted a comprehensive size standards
review was during the late 1970s and early 1980s.
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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.
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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.
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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.
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Sources:
The SBA’s Proposed
Rule page
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By Jack
Rivers
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