The Small Business Administration (SBA) is proposing to radically overhaul the standards the federal government uses to decide which companies count as small. The change would immediately bring more than 114,000 additional firms under that designation, making them eligible for federal loan guarantees, contract set-asides, and other support earmarked for small businesses.
These programs are intended to help smaller businesses access the resources they need to compete in the marketplace. Expanding eligibility to larger firms risks directing limited resources away from the independent businesses and entrepreneurs these programs were created to support.
Small businesses are essential to strong local economies. They create jobs, support local supply chains, and help communities thrive. Federal policy should strengthen their ability to compete, not make it harder for them to access the resources they need to succeed.
