The U.S. Small Business Administration (SBA) is currently seeking public input on two new proposed rules that it unveiled on September 14. The changes would revise the definition of “small business” for three sectors in the North American Industry Classification System (NAICS).
For the Agriculture, Forestry, Fishing and Hunting sector, the SBA has proposed raising 11 size standards, which would increase the number of U.S. firms with access to SBA loans and other programs by up to 7,500.
The agency also reported that it wants to increase 32 revenue-based standards and five asset-based standards for companies in the Finance and Insurance sector, as well as two size standards in the Management of Companies and Enterprises sector. In addition, the SBA proposed the use of average revenues, rather than average assets, to measure the size of international trade financing firms.
SBA officials estimate that if all of the proposed changes to the latter two sectors are implemented, it will allow over 7,400 more firms access to SBA programs.
These proposals are part of a comprehensive review of all size standards currently being undertaken as a result of the 2010 Small Business Jobs Act. The intention behind this effort is to enable enterprises to retain their small business status while growing, ensuring that they are eligible to benefit from the SBA’s loan programs and federal agencies’ small business procurement opportunities.
However, some business owners may not be entirely clear on what these classifications mean or what effects they may have. Any companies interested in finding out how they can benefit from related programs or any other government incentives should consider contacting a financial project consulting service. Working with interim financial professionals can help a company capitalize on opportunities as they arise.