Fort Worth’s business community and city officials are sounding the alarm over a federal proposal that would dramatically expand the definition of a “small” business. The U.S. Small Business Administration (SBA) released a draft rule in August that would replace nearly 1,000 size categories with 338 broader ones, raising both employee and revenue thresholds.
Local leaders voice concern
“We are very concerned about the impact these proposals could have on the genuinely small businesses the SBA was created to serve,” said Steve Montgomery, president and CEO of the Fort Worth Chamber of Commerce. Montgomery warned that the changes could undermine the agency’s original purpose by forcing firms with as few as 25 to 100 employees to compete against companies with thousands of workers for set‑aside contracts.
City Council District 6 member Mia Hall echoed the sentiment at an Oct. 27 council work session. “I definitely would like to protect the sanctity of what we are defining as a small business now,” Hall said, adding that the city could set its own size standards for local government contracts if needed.
What the SBA says
In a September news release, the SBA argued the new three‑factor methodology—considering national industry size, geographic market count, and average market size—will make the system easier to navigate and better reflect current economic conditions. The agency estimates the revised standards would increase the number of businesses eligible for federal contracts from 6.3 million to about 6.5 million, a 2 percent rise.
Potential downsides for Fort Worth firms
According to SBA documents, the broader definition could push roughly 200 companies out of eligibility for set‑aside contracts as the pool of mid‑size firms grows from an estimated 110,000 to 114,541. The Fort Worth Chamber’s own surveys show an 8‑to‑1 opposition ratio among local small businesses, with only 4 percent supporting the proposal as written.
Respondents cited fears of reduced profits, heightened competition for federal procurement, and increased subcontracting risk if larger firms win contracts that were previously reserved for truly small operators.
Political reaction
During a Manufacturing Day event in White Settlement, Rep. Marc Veasey (D‑Fort Worth) expressed disagreement with the administration’s sizing decisions, emphasizing the need to support both small and mid‑size businesses. “I know businesses that exist like that, but they have many, many more resources than someone who may have a business out here in White Settlement and they want to have seven people working there,” Veasey said.
Next steps
The public comment period has been extended to Nov. 20. Stakeholders can submit feedback through the SBA’s online portal. Fort Worth officials plan to monitor the comments closely and may consider adopting city‑specific size standards to protect local enterprises.
As the deadline approaches, the Chamber urges its members to voice their concerns, noting that small businesses remain a cornerstone of the regional economy and a vital source of jobs for families across Texas.
Original reporting: Fort Worth Report — read the source article.
