Create a federal ‘medium-sized business’ class for limited capital-access programs
Mandate notes SBA size standards are one-size-fits-all and urges Congress to create a medium-sized business classification whose eligibility is confined to capital-access programs where credit elsewhere does not exist.
Mandate
Mandate Ch. 25 (SBA) — Small-Business Size Standard Modernization: encourage Congress to create a ‘medium-sized business’ classification with eligibility for programs confined to access to capital programs from projects for which credit elsewhere does not exist.
Undo plan
1) Define medium-sized thresholds carefully so mid-market firms do not crowd out truly small concerns in contracting set-asides.
2) Confine any new class to credit gaps as Mandate states—not broad procurement preferences.
3) Align with international SME definitions only where useful.
4) Require credit-elsewhere tests with audit trails.
5) Verify: share of loans going to former ‘small’ vs new ‘medium’ cohorts.