SBA plan would let 114,000 larger firms qualify

The Small Business Administration is considering a broader definition that could make roughly 114,000 additional, larger companies eligible for SBA loans and federal contracts. The agency would replace about 1,000 industry-based classifications with 338 wider standards. The public may now weigh in until Nov. 20, after SBA added 60 days to the process.

Small-business owners and their advocates are largely resisting the change, warning that companies with hundreds or thousands of workers could compete for opportunities intended to help smaller firms. The National Federation of Independent Business urged caution, saying its typical member has about eight employees and far fewer resources than a larger competitor. Georgetown Policy Partners founder Patricia Hussey said the proposal could reduce the practical value of small-business protections.

Banks and lending groups have been more receptive. America’s Credit Unions endorsed the revisions, saying they could give credit unions more opportunities to offer SBA-backed loans. An Ameris Bancorp banker also described the expanded thresholds as sensible relief amid higher business costs. Twelve Democratic senators, including Massachusetts Sen. Edward Markey, asked SBA Administrator Kelly Loeffler to withdraw the proposal, citing concerns that companies with annual revenue above $1 billion could compete for small-business contracts.