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The U.S. Small Business Administration is withdrawing plans to change the way small businesses are defined, reportedly amid strong criticism of the plan from business groups.
The SBA was planning to define more businesses by the number of employees instead of by their revenue, a move which they said would make 35,000 new businesses eligible for SBA-backed loans and a chance to bid for federal government business. But critics said the changes would exclude another 34,000 businesses.
The SBA announced June 30 plans to withdraw the proposed rules and hold public hearings around the country to get business input.
"[The] SBA wants to make the SBA more like the small businesses it serves every day, and that means being responsive to our customers," said Allegra McCullough, SBA associate deputy administrator for government contracting, in a prepared statement. "That is why we have decided to revisit this issue."
The public comment period for the rule was to expire July 2, but the SBA has extended it another 45 days, presumably still looking for thoughts on what the right criteria would be.
While the SBA says the proposed rule change would...