“Proposal from SBA would make 34,100 companies ineligible for government funding.
By: Ian Ybarra
June 22, 2004 — Small businesses have until July 2 to log their opinions about a proposal from the Small Business Administration that seeks to alter the definition of the word ‘small’ when it comes to eligibility for certain types of funding.
The proposal would introduce new standards and guidelines for the term ‘small business,’ a definition that impacts which businesses are eligible for funding and special contracts from government agencies. With these new standards, the the SBA argues, it will be easier for more businesses to apply to SBA programs. The new standards would also reduce costs of administering SBA programs, according to the agency.”
– Wow! So someone employing a lot of people but not having large annual receipts would no longer qualify as a small business and lose SBA benefits. Sounds like something that has the potential to push up unemployment. What do you think? -ed.