New Small Business Definitions
Are you aware what constitutes a small business? If you haven’t been keeping up with changes in the past year to the definition of what makes a business “small”, then you would likely label many businesses wrong.
Between the JOBS Act, which was signed by President Obama last week, and changes made by the SBA, the qualifications of a small business have drastically expanded. Many medium-sized businesses are now considered small businesses.
One component of the JOBS Act is the increase in the number of investors a a private business can have before it must register with the Securities and Exchange Committee. The number has been raised to 2,000 investors from a mere 500 investors.
The SBA has also been allowing more companies to fit in the category of small business. Recent changes in legislation by the SBA mean that this year over 27,000 more businesses will be considered small businesses.
For more up-to-date information on small businesses and the legislation that affect them, tune into BIZ TV!