The Small Business Administration, or SBA, is making some changes regarding the qualifications of size (number of employees) and annual revenue. Now bigger companies, about 8,500 of them, will qualify for federal small business support. This Washington Post article by J.D. Harrison stresses the worry that these expansions will eventually eliminate truly small businesses by creating a new, mid-sized market that will absorb much of the federal support in order to compete with multi-billion dollar corporations.
The other side of that coin is, with much of the economy on the mend, it's very possible for these mid-sizers to thrive with a little support. Also, with some competition, the incentive to lower prices will increase and benefit consumers and taxpayers.
An interim version of the rule will be effective as of July 14, 2014. You may submit comments about this ruling to http://www.regulations.gov/ through July 18, 2014. The SBA is looking for comments regarding the changes in the size and revenues thresholds. To view the "Size Standards Methodology" issued by the Small Business Administration, visit http://www.sba.gov/size.
How will this affect you? Do you think this is an acceptable move by the federal government? Let us know below.