Most business tips encourage entrepreneurs to focus on the here-and-now to improve the bottom line. The U.S. Small Business Administration is giving them the change to shape the future.

The agency recently proposed a comprehensive overhaul of its small business size standards, modernizing how the federal government defines and classifies small businesses across the United States. Published in a proposed rule, the new standards would simplify industry categorization and raise applicable size thresholds, allowing small but rapidly growing firms to continue qualifying and adding more than 110,000 firms to the 36 million small businesses in America. 

“Small businesses create the vast majority of new jobs,” said SBA Administrator Kelly Loeffler, in a media release. “ By streamlining definitions, the SBA will expand access capital, counseling, and contracting opportunities, which in turn create jobs and drive growth.”

According to the release, the changes would enable more businesses to access SBA loans, compete for federal contracts and participate in other federal support programs, while reducing the regulatory ambiguity and compliance costs associated with narrow industry classifications.

Small-business owners can add their voice to the conversation by commenting on the proposed rule. The SBA is seeking comments on the proposed rule. Small businesses can check their current industry classification and size eligibility by visiting sba.gov/size-standards.

SOURCE: U.S. Small Business Administration