Trump's SBA Proposes Reclassifying Billion-Dollar Firms as Small Businesses
The Trump administration’s Small Business Administration (SBA) proposed a significant rule change that would reclassify billion-dollar corporations as small businesses, potentially expanding their eligibility for federal contracts and financial assistance. The proposal, announced on August 20, could allow over 114,000 additional firms to qualify under the new revenue thresholds. For example, investment banks' annual revenue limit for being considered a small business would rise from $47 million to $867 million. The SBA argues that this change will broaden access to government contracts and loans by including larger companies in what is traditionally seen as a category reserved for smaller firms. However, critics warn it could disadvantage true small businesses by increasing competition with better-resourced rivals. The rule would also affect the 23% federal contract goal set aside for small businesses. The public comment period runs through September 21 before any final decision is made.
Topics: federal_contracts SBA_reclassification small_business