SBA Adjusts Small Business Size Standard to Allow More to Apply for Federal Contracts and Loans
The Small Business Association (SBA) has revised its small business size standards in 16 industrial sectors. The changes are designed to increase eligibility for SBA’s federal contracting and loan programs, expanding access of loans for 59,000 small businesses.
SBA Adjusts Small Business Size Standard
The adjustments are part of the second five-year review of size standards, as required under the Small Business Jobs Act of 2020.
For small businesses of diverse industries, the size standard adjustment will be a welcoming change, opening up opportunities for vital funding for businesses.
Greater Access to Contracting and Loan Opportunities
As Bibi Hidalgo, Associate Administrator for Government Contracting and Business Development, said: “SBA continues to evolve its approach on size standards to ensure that we create access to contracting and loan opportunities for as many small businesses as possible.
“The publication of these final rules will make 59,000 additional firms eligible for millions of dollars in revenue and business expansion opportunities across a wide range of sectors. This expansion is equally important for contracting agencies, as a diverse industrial base helps ensure a healthy supply chain and, in turn, supports our nation’s broader economic health,” Hidalgo added.
Bringing Contracting Opportunities to Newly Qualified Businesses
As well as expanding SBA programs to additional businesses, the administration estimates that some 844 newly qualified small businesses will have contracting opportunities worth an estimated $1bn via four final rules. This is on top of 504 loans worth almost $45 million to newly qualified small businesses.
The increase in size standards in 16 different sectors will also enable some mid-size businesses to regain small business status. Current small businesses will be able to retain their small business status for an extended period. Subsequently, such businesses will be able to benefit from SBA’s procurement and loan programs.
As the precarity of the COVID-19 pandemic continues, coupled with the conflict in Ukraine, it is vital small businesses are aware of changes to funding legislation, so they know what funding is available to them. Having access to loans can be vital for small business growth and success.
This article, “SBA Adjusts Small Business Size Standard to Allow More to Apply for Federal Contracts and Loans” was first published on Small Business Trends