posted 05-28-1999 05:04 PM               

We've been tracking some of the government agendas for small businesses in the US. The Small Business Year 2000 Readiness Act, signed into law on April 2, 1999, sets up a $500 million loan program to help us little guys deal with the Y2K bug that may hit us in the business big time.

The SBY2kRA authorizes the US Small Business Administration (SBA)to underwrite loans to enable small businesses to purchase the systems, software, equipment, and services necessary to become Y2K compliant and to help businesses that suffer economic loss as a result of Y2K computer glitches.

The text of the bill is straightforward and easily understood, but the application of it for lenders and borrowers may not be that clearly cut.

Reports in the press claim that the Y2K Readiness Act is aimed at small businesses of 5 to 500 employees.

Wait a minute! What about the nanocorps? Are we being cut out of potential support and access to government programs because we are "too small" to be considered?

In other words, when the government uses the term "small business" just who are they talking about? How small IS small?

In a recent report, the House defines Small Business as:

In broad terms, a small business is defined as any type of business that does not dominate its field of business. In the manufacturing field, small businesses are usually defined as businesses that employ less than 500 persons. In the services,small businesses are usually defined as businesses that generate less than $5 million in gross annual receipts.

This is certainly vague enough to be confusing.

posted 08-04-1999 12:08 AM               

• How does the size of a nanocorp affect its access to support and investment?


• Are nanocorps eligble for government programs that support "small business"?


• Are the "ruthlessly small" considered for support by funding agencies?


• Do banks discriminate against really small businesses like nanocorps, and shuffle their feet at lending them money?


• How do investors view nanocorps?
• Would a venture capitalist invest in the ruthlessly small nanocorp?