The federal government has — in some cases, drastically — revised standards that determine which businesses are small enough to receive Small Business Administration aid.
The rule changes affect 70 industries and go into effect July 22, when more than 17,000 firms not eligible for SBA benefits will begin to qualify, the SBA said Thursday.
For 25 industries, including consumer lending and sports team, among others, the average annual revenue size standard was increased to $35.5 million from $7 million.
There are two key benefits to qualifying as a small business, says Khem Sharma, chief of the SBA’s division of size and standards.
Businesses become eligible for SBA-guaranteed loans and, more importantly, they are added to the agency’s database of firms eligible for government contracts.