Why hasn SBA raised the net worth requirements through regulations?
SBA and the SBA’s own Office of Inspector General have had a longstanding disagreement about this issue. While it may be problematic in some industries, SBA has not seen a drop in applications or evidence that this has created a barrier to entry. The current standard provides a maximum financial worth no more than $250,000 at entry into the program and a maximum of $750,000 during program participation. The IG continues to have concerns over the nature of economic disadvantage and its use by the agency to provide opportunities to 8(a) businesses. A recently released study commissioned by the Congressional Black Caucus does not relate to economic disadvantage. According the Federal Reserve, the median level of wealth of all families in 2001 was $86,100. In addition, the family net worth for persons in the top 10 percent of this income group is $833,600. This figure includes the value of the family’s house and business. The Census Bureau’s report on income in the United States in 2004 st
Related Questions
- What are net worth requirements for a mortgage lender under the saving clause and for a mortgage lender who is seeking a servicing endorsement?
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