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New Size Standards For Small Businesses

Mar 21, 2024 | Coatesville

The parameters defining small businesses have been broadened with the introduction of a new SBA rule that took effect on March 18, 2024. This revision extends the eligibility for SBA 504 or 7(a) loans by adjusting the thresholds to accommodate inflation. Now, businesses meeting the following criteria may qualify:

  • Tangible net worth not exceeding $20 million (previously $15 million).
  • Average net income after federal income taxes for the two fiscal years preceding the SBA application date not surpassing $6.5 million (previously $5 million).

According to the National Association of Development Companies (NADCO), this adjustment reflects a 34.46% increase to accommodate inflation. Additionally, the SBA has committed to monitoring economic indicators and their influence on size standards, with plans to make inflation adjustments on a five-year basis. Sherwood Robbins, Managing Director of Seedcopa + SeedcoDE, expressed, “This greatly increases the number of businesses that we can assist with our programs.”

For further inquiries, please reach out to Seedcopa + SeedcoDE for detailed information. Seedcopa + SeedcoDE are in partnership with the Chester County Economic Development Council. Find the full, original article by Leah R here.

Posted by Monica Ferguson

Monica is a senior at West Chester University studying Digital Marketing. She is excited about moving to Chester County and eventually starting her career there after graduation.

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