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.

About the Author

Mark Hoover is a senior staff writer with Washington Technology. You can contact him at, or connect with him on Twitter at @mhooverWT.

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