WASHINGTON, D.C — The U.S. Small Business Administration is updating its small-business size standards (such as receipts, assets, net worth and income) to allow more small businesses to become eligible for SBA loans and other financial programs.
More than 8,400 businesses could gain small-business status under the changes, the SBA estimates, which could possibly lead to additional small-business loans totaling $30 million. The changes were published in the Federal Register June 12 and take effect July 14. The changes account for inflation that has occurred since the last change in 2008.
The Wall Street Journal reports that the changes is intended to help minority entrepreneurs, noting that that black business owners received just 2.3% of the roughly 54,000 loans made by the SBA in fiscal 2013, down from 11% in 2008.
Learn more about these changes here:
- SBA.gov: SBA Adjusts Size Standards for Inflation
- SBA.gov: Guide to Small Business Size Standards
- WSJ: Federal Government to Streamline Key SBA Loan Requirements
The interim final rule was published in the Federal Register today.