Key facts
- The Trump administration is considering raising the revenue and employee limits for small businesses.
- This change would allow businesses with higher revenues and more employees to qualify for federal contracts and loans.
- Small business owners express concern that this could disadvantage smaller companies.
- The proposed changes are part of an effort to update size standards for federal programs.
The Trump administration is exploring a significant revision of the criteria used to define small businesses for federal programs. Under consideration is a proposal to raise the revenue and employee thresholds, potentially allowing companies with revenues up to $1 billion to be classified as 'small.' This adjustment aims to modernize the size standards, which have not been comprehensively updated in decades. However, the move has drawn criticism from some small business owners who fear it could create an uneven playing field, disadvantaging smaller enterprises that rely on these federal programs for contracts and loans.