There’s good news to share today with our clients and other businesses hoping to secure an SBA loan to help fuel their growth.
Roughly 8,400 additional businesses will gain small-business status under new size standards as set by the Small Business Administration.
Not only will these companies be able to obtain an SBA loan but they also will be eligible to take part in federal procurement programs.
The SBA expects the changes could possibly lead to more than $150 million to $200 million in additional federal contracts awarded to small businesses and 80 additional loans totaling about $30 million.
The changes are effective July 14.
The SBA says it is making the change because companies in certain sectors have to compete with multibillion-dollar corporations. In that case, even a company with tens of millions of dollars in sales warrants small-business support.
SBA officials also say the changes will allow some firms that have lost access to contract set-asides or loan programs due to inflation to now regain their status.
Others that are about to exceed the size limit for their industry will also be able to continue taking advantage of those programs.
Moreover, the SBA says, “federal agencies will have a larger pool of small businesses from which to draw for their small business procurement programs.”
More competition, it says, will help drive down prices and lead to a better return for taxpayers.
About the Author
Lon is the former publisher of the Colorado Springs Business Journal and Colorado Springs Military Newspaper Group.He has served in leadership roles at various newspapers in Iowa, Florida and Wisconsin. Lon received his Bachelor of Arts in Communications from the University of Wisconsin, Eau Claire and attended the Kellogg Graduate School of Management at Northwestern University. Earlier in his career, Lon spent several years as a sea captain and held a 100-ton Coast Guard license. Lon is a former rugby player, referee and administrator and now coaches under 13 year old kids. Lon has served on the boards of numerous community and business organizations including Colorado Springs Leadership Institute, Peak Venture Group, CS Quality of Life Indicators Business Index Committee, Junior Achievement and is a member of The Colorado Thirty Group. Lon was given the “Making the Pikes Peak region a better place to live work and play” award by the CS Chamber of Commerce, was the VFW Post 1’s business citizen of the year.