A business as defined by the Small Business Association (SBA) as an entity that is organized for profit; operates as place of business in the U.S.; and makes significant contributions to the U.S. economy through payment of taxes or use of American products, materials or labor. Businesses are independently owned and operated, and cannot be dominant in their field nationally. The types of businesses primarily include: corporations, partnerships, and sole proprietorships.
The SBA has established business size definitions, or “size standards,” for all for-profit industries numerically representing the largest size that a business may be to remain classified as a small business and this includes its affiliates and subsidiaries. The size standards apply to the SBA’s programs such as financial assistance and to Federal government procurement programs when there is a benefit available. A business must qualify as a small business concern. The Small Business Act states that no Federal department or agency may prescribe a size standard for categorizing a business concern as a small business concern, unless such proposed size standard meets certain criteria and is approved by the Administrator of SBA and unless specifically authorized by statute.
The fact that there are standards and regulations for business is another reason factoring for small business today remains one of the oldest practices in history.
For more information on factoring, or accounts receivable factoring, go to http:www.ifgnetwork.com.
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