Hundreds of Utah businesses that previously were unable to receive support from the U.S. Small Business Administration because their revenue was too large may soon qualify for assistance.
The SBA said Wednesday it has issued several new rules that become effective late next month that redefine the maximum size a firm can be and still be considered a small business.
Depending upon the industry in which they operate, the SBA will classify companies as a small business based upon either the number of their employees or annual revenue. The new standards apply only to companies that can be classified as a small business based on annual revenue.
The SBA estimates the new standards will cover more than 13,000 firms nationwide in the real estate and rental and leasing sector, 1,500 additional businesses in the educational services sector and 4,100 in the health care and social assistance sectors.
For example, a company that rents consumer electronics and appliances previously would have been considered a small business if its annual revenue was below $7 million. Under the new standard, it would be considered a small business if it generates revenue of less than $35.5 million a year.
Once the new rules go into effect, those businesses become eligible for SBA loan and federal procurement programs.
For information go to http://www.sba.gov/size and click on “What’s New with Size Standards.”