PETALUMA, Calif., Oct. 16, 2014/PRNewswire-USNewswire/ -- The Small Business Administration (SBA) has proposeda new policy that could force thousands of small businessesin the Information Technology industry out of the federal marketplace.

The new policy involves IT Value AddedResellers that do business with the federal government and government primecontractors under NAICS code 541519, Other Computer Related Services.

The current small business size standard for IT Value AddedResellers has a maximum employee size standard of 150 employees. If the new SBApolicy takes effect, current government IT suppliers will lose their smallbusiness status if their annual revenue exceeds $27.5million. After they lose their small business status, thousands of smallbusinesses in the IT industry will be reclassified as large businesses and willbe required to hopelessly compete head to head with Fortune 500 firms and thousands oflarge businesses for federal contracts.

Critics of the proposed policy change believe the proposedchange is an attempt by the SBA to eliminate the small business size standardof less than 500 employees to make it easier for large businesses to land smallbusiness contracts. In recent months the SBA has adopted a series of pro-bigbusiness increases in small business size standards that have redefinedthousands of large businesses as small businesses. The Washington Post recentlypublished a story on the pro-big business SBA policies titled, "How 8,500 large companies will become small businessesovernight."

Over ten years ago, the SBA originally proposed a small businesssize standard of 500 employees or less for NAICS code 541519, Other ComputerRelated Services. At that time as it is today, the average IT Value AddedReseller has less than 20 employees.  In 2004, Current American SmallBusiness League (ASBL)President Lloyd Chapman launched a national campaign tooppose the 500 employee size standard in favor of a more appropriate and smallbusiness friendly size standard of 100 employees. Chapman was able to generatea record number of comments opposing the SBA's 500 employee size standard andthe SBA was forced to drop it to 150 employees or less.

A 2004 Computer Reseller News story reported on Lloyd Chapman's successful campaign to forcethe SBA to lower the size standard from 500 to 150.

The ASBL has launched a national campaign to oppose the new SBA policy that couldmake it difficult if not impossible for IT Value Added Resellers to compete forfederal contracts and subcontracts.

The ASBL believes the SBA's justification for changing the sizestandard is inaccurateand unjustifiable by factual industry data. They are working with attorneysin California and Washington, D.C. toprepare to file an injunction if necessary to block the implementation of thepolicy.

The SBA will be taking public comments on the new policy until November 10. Individuals wishing to send a commentopposing the new policy can do so by clicking "Comment Now!" on the federal regulation's website.

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