The Small Business Administration has adopted a new policy requiring small firms with federal contracts to recertify themselves as small businesses if they are acquired or merge with another company.

The SBA faced criticism for continuing to count contracts as small-business awards even after a small firm was acquired by a large one.

"This rule is a step in the right direction--in effect reversing egregious government polices that have allowed federal contracts meant for small businesses to go to large, often multinational, companies," Lloyd Chapman, president of the American Small Business League, said in a news release. Chapman's group focuses on small-business contracting issues.