SBA looks to redefine small business parameters

3/17/2011

The definition of what precisely constitutes a small business can be hazy and sometimes prevents a company from getting the commercial loans it needs to stay in business. The U.S. Small Business Administration is now looking to further specify the size definitions of companies in the professional, scientific and technical services sector, the Times Record News reports.

The new revisions, which would increase the revenue-based size definition, would affect companies in a total of 36 different industries and one sub-sector. This alteration comes after the SBA launched an extensive review of all of its size standards.

"In 2007, the SBA began the process of reviewing and updating size standards based on industry-specific data. Before this, the last overall review of size standards occurred more than 25 years ago," notes the source. "Under provisions in the Small Business Jobs Act of 2010, the SBA will continue its comprehensive review of all size standards for the next several years."

Earlier this week, Government Executive reported that the SBA was looking to entrepreneurs for advice on how to improve its services. The goal is to make a system that is fair for all entrepreneurs.