Rule reclassifies IT small biz

A rule that takes effect Jan. 28 will establish a new small-business category, Information Technology Value Added Resellers. The rule sets the standard to qualify as small at 150 employees. The class is for small businesses that provide IT equipment and multivendor hardware and software along with significant services on a federal contract.

Before the new rule, businesses that provided IT equipment along with services were classified as either manufacturers or nonmanufacturers, with a size standard based on employees. Those that provided primarily services, along with equipment, were classified as a computer services provider with a size standard based on receipts.

The new classification was created to eliminate confusing descriptions and provide a single size standard. It is part of an ongoing effort in the Small Business Administration to simplify the definition of small businesses.