17,000 more businesses are now eligible for SBA programs

Some tremendously good recent news for small business owners. Yesterday, the Small Business Administration instituted changes in small business size standards for the retail, hospitality, restaurant and “other services” industries. This change will make 17,000 more businesses eligible for SBA programs, including loans and preferential treatment for federal contracts.

According to the Washington Business Journal, this change in small business size standards for the service industry is a part of the SBA’s new approach in better defining who exactly is considered by the federal government to be a small business. Over the next two years, the SBA will complete its update in the rules, which have not been overhauled since 1980s.

The question now is who is going to benefit the most from this?

According the Journal, car dealers will be a major beneficiary of the change in size standards. The standards for dealers will be shifted from a maximum sales-based measurement (previously $29 million in average yearly sales) to an employee based number of 200 workers. The Journal estimates this will make 5,700 more dealerships across the country eligible for the SBA’s programs.

The SBA has also adjusted upwards the size standards for hotels, (limited-service) restaurants, cafeterias and food service contractors with the effect of making more than 2,000 businesses in these sectors into eligible small businesses.

So what does this all mean? Well, more more money for more businesses means more hiring and more growth. That’s always excellent to see.

[At the SBA, Size Definitely Matters]

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