Businesses are increasingly trying to get more people into the workforce through training and education programs, but a new federal rule aimed at reducing the number of small business owners in the United States will likely fail to address that need.
The rules announced Thursday by the Small Business Administration will target companies with less than 50 full-time employees.
Those companies would be classified as “small business owners” and could face hefty fines and penalties.
The rule, which will come into effect Jan. 1, also seeks to expand the number, type and size of employees that are allowed to participate in a small business.
A company could be classified “small” if it had fewer than 50 employees and “small-business” if fewer than 20.
The measure is designed to encourage more small businesses to hire workers, and will give small businesses the opportunity to advertise to potential customers and increase sales.
The new rule is designed primarily to help small businesses that are in a difficult economic situation, like the foreclosure crisis.
In an interview with The Hill, Small Business Administrator Linda H. Miller said that the agency wants to provide more opportunities for small businesses, including by making it easier for them to advertise and expand the hours they work.
“We want to make sure that small businesses have a place to be and they have a job, and they can do that while we get the unemployment rate down and the economy growing,” she said.
“Small businesses can do what they want to do and make money.
They can grow their businesses, but they also need to have a purpose, a purpose for doing it.”
Small businesses can still take advantage of the existing small business rule, but it will take a higher level of oversight.
The SBA says that it is currently unable to impose additional restrictions on the small business owner program.
The agency will be able to impose penalties on companies that fail to register as small businesses.
Small businesses would still be able under the new rules to advertise in local markets and to make loans.
Miller added that it’s unclear how many small businesses will be eligible for the expanded rule.
The number of employees for small-business owners is expected to increase by 20 percent, but that increase is expected only to be temporary.
According to a recent report from the Small and Medium Business Administration, there are currently about 1.6 million small businesses in the U.S., with more than one in four businesses reporting a loss of revenue for the past year.
Miller also said that in the past few years, there has been a “significant increase in small- and medium-sized businesses operating in the private sector,” which is also helping small businesses gain access to the job market.
The government is currently working on a rule to reduce the unemployment rates for the unemployed, as well as for people looking for jobs.
“There’s no question that the unemployment crisis is one of the most pressing economic challenges facing the country,” Miller said.
The Obama administration also has a plan in place to address the foreclosure problem, which is expected in the next few weeks.
The administration has said it plans to roll out a proposal to provide tax relief for home foreclosures in December.
The president is expected at a news conference with U.N. Secretary-General Antonio Guterres in December to announce the agreement to address these crises.