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Barbara Weltman

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SBA’s New Definition of a Small Business

March 28, 2016 / By Barbara Weltman

On February 26, 2016, a revised definition became effective. Under the new definition, many more businesses can qualify as “small” and, thus, can be considered for SBA-backed loans. The change does nothing to help really small businesses (e.g., those with fewer than 50 employees that are considered small for ACA purposes), and could be harmful by channeling SBA loan dollars to larger firms. Time will tell.

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