Trump Administration Proposes Major Expansion of SBA Small-Business Definition

The Small Business Administration (SBA) is drafting a proposal to broaden the criteria that determine eligibility for SBA programs. Under the plan, companies with substantially higher revenues and employee counts could qualify for federal contracts, loans and other assistance that have traditionally been reserved for smaller firms. The administration argues the change will let growing businesses continue to benefit from SBA support as they scale.

New York Times

Current SBA standards cap eligibility for most industries at annual revenues of up to $47 million and fewer than 1,500 employees—a threshold that has remained largely unchanged for decades. The new proposal would raise those limits dramatically, allowing firms in sectors such as financial investment services to qualify with revenues of up to $1 billion and workforces exceeding 3,000 people. Proponents say the revision reflects modern economic realities, while critics warn it could pit genuine small enterprises against much larger competitors for limited federal resources.

New York Times

The Trump administration frames the overhaul as a means to keep thriving businesses within the SBA’s safety net while bolstering supply-chain resilience.

New York Times

• Current eligibility cap: <= $47 million in annual revenue and <= 1,500 employees.

New York Times

• Proposed cap in select industries: up to $1 billion in revenue and more than 3,000 employees.

New York Times

• “I don’t feel like this change was made with small business in mind,” — Angela Dingle

New York Times