For the first time in more than a quarter century, the Small Business Administration (SBA) plans to change the definitions of small businesses with respect to government contracting. The new rules could result in 9,450 additional companies, mostly those offering professional, scientific and technical services, becoming eligible for work with the federal government.

 

For example, small engineering services firms making as much as $19 million a year would qualify for SBA programs; previously, the limit was $4.5 million. Small law offices earning up to $10 million annually also would qualify.

 

SBA officials say the changes are being made to reflect the current realities of industry and to “stop the misuse of small-business contract programs.” Generally speaking, to qualify for a federal small business contract, a company must have annual revenues of less than $7 million.

-Noel Brinkerhoff

 

SBA to Let Larger Companies Win Small-Biz Contracts (by Sarah Chacko, Federal Times)

When It Comes to Small Business Classification, Size Does Matter (by Ned Smith, Business News Daily)

Government Accused of Giving Small Business Contracts to Fortune 500 Companies (by Noel Brinkerhoff, AllGov)