Once they qualify as small businesses, they can compete for federal contracts, because government-wide, 23% of purchases of goods and services have to be from small businesses.
(PRWEB) June 29, 2013
The Small Business Administration is making big changes to the definition of what constitutes a small business, with updated size standards for businesses in 70 industries. These new guidelines that go into effect July 22, 2013 could have major implications to US Small Businesses. A recent article in the Wall Street Journal, by Mohana Ravindranath, “‘Small business’ gets bigger, by new SBA standards” establishes that many small businesses will be eligible for SBA loans, and federal agencies will be able to consider a larger pool of small businesses for contracts. With so many small businesses looking for SBA loans and contracts, these changes can be a game changer and Nevada Corporate Headquarters (NCH) can help businesses understand what it needs to do to qualify.
According to the SBA, as a result of the changes, more than 7,800 additional businesses will qualify in the agriculture, forestry, fishing and hunting sector, 7,400 in the finance and insurance sectors, 1,450 in arts, entertainment and recreation, and 475 in the mining, quarrying and oil and gas extraction sector. These new changes have sent small business owners scrambling for more information on what these changes could mean for them.
“Once they qualify as small businesses, they can compete for federal contracts, because government-wide, 23% of purchases of goods and services have to be from small businesses,” says Khem Sharma, the SBA’s Size Standards Division Chief.
In order to qualify, a business must know what the SBA criteria are for their loans and contracts. A business must prepare prior to application; if a company fails to understand the qualification standards, it will be wasting time and will most likely be declined. Meeting these requirements will provide a company with the highest degree of assurance that all applications submitted to obtain lines of trade credit have the highest likelihood of approval. A good place to start is by having NCH do a Business Credit Analysis on the principles and the business. This simple process can greatly increases your chances of gaining a successful approval.
About Nevada Corporate Headquarters, Inc.
Nevada Corporate Headquarters and its sister companies are comprised of CPAs, small business advisors and tax professionals. These experts will ensure you are paying your fair share but not a dime more. For over 20 years, NCH has been the source for Nevada corporations, Nevada LLCs, asset protection strategies, business credit establishment and many other business/financial services. Unlike other companies, NCH prides itself on service and guidance for clients with a genuine desire to help you succeed. Whether you are thinking of incorporating a business or looking for asset protection strategies – look to NCH’s in-house team of business and finance experts.