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SBA Proposes Overhaul to Simplify Small Business Classification and Expand Access to Federal Programs
The proposal would make about 110,000 more companies eligible for SBA loans and set-aside contracts, officials said.
On Thursday, the U.S. Small Business Administration proposed an overhaul of small business size standards, adding over 110,000 firms to the 36 million small businesses in America.
The agency seeks to modernize definitions by cutting roughly 65% of North American Industry Classification System codes, reducing nearly 1,000 categories down to 338 broader classifications.
Proposed changes include raising employee-based thresholds for semiconductor manufacturers from 1,250 to 2,800 workers and increasing revenue caps for animal production from $11 million to $71 million.
Procurement lawyer Eric Crusius called the proposal a "shock to the system," while Imani Augustus of Third Way warned of a "capital gap" for mid-sized firms in the "missing middle."
SBA Administrator Kelly Loeffler defended the proposal as empowering businesses to compete against large corporations under President Trump's pro-growth agenda, though it faces a 30-day comment period.