WASHINGTON–The Small Business Administration (SBA) has issued a proposal that would increase the asset threshold used to determine small business status to $5.031 billion (up from the current $850 million).
The SBA is estimating the change would bring an additional 429 credit unions within the small business definition, for a total of 4,471 credit unions eligible for federal small business assistance, according to America’s Credit Unions.
“Classifying more credit unions as small businesses increases the likelihood that the CFPB will conduct Small Business Regulatory Enforcement Fairness Act panels during its rulemaking process,” the trade group said in its analysis, noting it has been advocating for the change.
America’s Credit Unions said the proposal would, among other things:
- Streamline the existing six-digit North American Industry Classification System structure to a four-digit classification system that reduces total size standard categories down to 338 (from nearly 1,000).
- Introduce regional market considerations to “ensure size thresholds accurately reflect the realities of local economic competition,” according to the agency.
The proposal can be found here
