Proposed changes to SBA rules could cripple small biz value-added resellers

Proposed changes to Small Business Administration rules could have a negative effect on Information Technology Value-Added Resellers, taking away an exemption that these businesses have and qualifying them as large businesses if they have more than $27.5 million in annual sales, according to FCW.

Small Business League president Lloyd Chapman was quoted as saying that the proposed changes would nearly bankrupt 90 percent of IT value-added resellers that have 150 or fewer employees, FCW reported.

The changes were proposed as part of a larger effort on behalf of the administration to consolidate the Small Business Administration into the Commerce and Labor Departments in order to streamline government operations, FCW said.