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

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

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

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