David Kirkpatrick

November 24, 2009

Small business are getting bigger

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 2:20 pm

At least in the eyes and definition of the Small Business Administration. Both small- and mid-sized businesses can use all the help they can get right now, but these moves seem to always open a back door for the very large structures in the corporate world to get hold of some unneeded “free” money through subsidiaries that are big, but just enough not so to qualify.

From the link:

The Small Business Administration will redefine what “small” means for firms in hundreds of industriesby revamping size standards over the next two years. The result: More businesses will qualify for all types of SBA financial aid, such as the flagship 7(a) loan guarantee program.

The SBA hasn’t taken a hard look at its size standards for more than 25 years, although it periodically makes inflation adjustments, as it did last year. There’s no doubt that in the last quarter-century, changes in industry structure, market conditions and business models have changed the definition of “small” for all sorts of businesses. The SBA’s effort will involve reviewing the standards for businesses in about 900 industries and adjusting them upward — or, in a few cases, downward — as needed.

Also from the link:

In the first round of this size standard revamp, SBA is looking at 138 industries and proposing to change the standards for 71 of them. For example, SBA wants to raise the cap on annual receipts for jewelry stores from $7 million to $25 million, which would allow a lot more stores to qualify for aid. The cap for nurseries and garden centers is proposed go from $27 million to $30 million.

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