Do you own a small business? You may think so, but your designation may depend on whether the Small Business Administration classifies you as such or not.
Given the tangible benefits to having the backing of the SBA as you go about your daily business, the news I’m delivering courtesy of the invaluable Business News Daily should be encouraging for you. The organization, which offers programs and services aimed at aiding small business, is considering expanding the criteria that will give you the right to seek membership.
In all, the SBA estimates some 9,000-plus firms nationwide will be eligible for membership who weren’t before. Here’s the current guidelines, per Business News Daily:
The SBA defines small businesses based on two aspects of size: revenues and number of employees. Most small businesses judged on annual revenue have been measured against a base or “anchor size” of $7 million. Where the number of employees has been the magic metric for small business classification, the ceiling has been 100 for wholesale trade companies and 500 for retail trade companies. Regardless of classification, if your company receives federal contracts, the employee cap is 500.
The changes, which haven’t been announced in a fully fleshed-out form to this point, would essentially change around some of the necessary employee and revenue counts:
Under the new proposed caps, for example, a law office might be able to have revenues of as much as $10 million and still be classified as a small business. An engineering services company could make as much as $17 million.
If you’re a small business who heretofore could not be a member of the SBA, you’re going to want to watch this closely. If you want to add your two cents, you can do so in our comments or at the regulations.gov website.
Photo credit to satty4u at http://www.sxc.hu/browse.phtml?f=view&id=1117007