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SBA Expands Definition of “Small Business”

| Jul 11, 2014 | Business

The Small Business Administration expanded the definition of Small Business to include more businesses under its umbrella of opportunities.  The SBA provides financing, government contracting and other opportunities to Small Businesses.

The definition of a Small Business is based upon either the average number of employees over the past 12 months or the average annul receipts over the 36 months.  SBA further defines a U.S. Small Business as a concern that:

1.  Is organized for profit

2.  Has a place of buiness in the US

3.  Operates primarily within the US or makes a significant contribution to the   US economny

4.  Is independently owned and operated

5. Is not dominant in its field on a national basis

The Small Business may operate in any legal form, including,  sole proprietorship, partnership and corporation. The general definition of a Small Business set forth above is further refined by the type of business, for example, service industry, manufacturing, start-up bio-science, etc.

The registration as a small business is a self-determination and you need to register.  All of this can be done online at www.sba.gov.  To qualify for Small Business federal government contracts, your company must be registered with the SBA.