June 2013 - Vol4 Issue 6

 

The New Definition of Small Business



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Until this month, the definition of what makes a “small” business has been defined by guidelines established years ago. However, effective July 2013, the United States Small Business Administration (SBA) is changing the definition of a small business by increasing the limits under federal guidelines.

The size of a business is based on several factors including industry sectors. The SBA considers revenues, assets, competition, and number of employees. The changes by the SBA will add over 17,000 companies in industries such as agriculture, forestry and hunting; finance and insurance; company management; arts, entertainment and recreation; and mining support services.

David Mulcahy, director of Lamar University’s Small Business Development Center, sees the changes as going in the right direction to help businesses that want to grow, expand, and improve their products and services -- although the number of businesses projected to fall into the new guidelines is technically small.

“Static numbers are very hard to come by when one talks of ongoing business concerns in the US and the Golden Triangle,” Mulcahy said. “The Census Bureau shows in 2011 that 18,233 businesses were in operation in Jefferson, Hardin and Orange counties. With the SBA’s redefinition of a small business, that allows only 17,000 more businesses nationwide to take advantage of SBA lending programs.”

Mulcahy goes on to state that the SBA ruling will affect a small number of business through our workforce development area. However, he encourages small businesses owners to take advantage of the services offered through the Small Business Development Center including application for SBA financial assistance programs for small businesses that have been designed to meet key financing needs, including debt financing, surety bonds, and equity financing.

For more information, call David Mulcahy at the SBDC in Beaumont at 409-839-2963 or Linda Tait at the SBDC in Port Arthur at 409-984-6531.

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