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New SBA Small-Business Definition Hurts Actual Small Businesses

By: Carol Tice | October 13, 2010 9:30 AM What is a small business, anyway? How big can it be before it's not a small business anymore? The Small Business Administration has been mulling these questions and now, for the first time in decades, has redefined how large a company can be and still qualify for SBA assistance.

In some industries, small businesses can now be a lot bigger. Which seems like a big step in the wrong direction.

The SBA sets its cutoffs based on either the number of employees or average annual receipts. Previously, $7 million in annual revenue was the cutoff for most industries.