[granzymes]

> A hidden loophole, meant for small businesses, co-opted by multibillion-dollar tech companies to avoid accountability, just because they can.

There are a lot of issues with this newsletter, but this bit at the end stuck out. The 'loophole' is for companies with

- total annual gross revenues less than $1.07 billion and

- less than $1 billion in non-convertible debt in the past three years and

- not a “large accelerated filer,” as defined in Exchange Act Rule 12b-2

The newsletter is trying to make this sound like it was meant for mom-and-pop shops, but how on earth can you have revenues of more than $1.07 billion without being a "multibillion-dollar" company?

https://www.sec.gov/smallbusiness/goingpublic/EGC

[Retric]

Gross revenue is before expenses. Software tends to have great margins but retail can easily be 1% profit margin. So in many industries that’s a limit of just over 10 million per year in profit.

[wwn_se]

True still not really "mom and pop" at least in my mind.

[Retric]

Small business in the US is really ambiguous, but mom and pop is used very differently than small business. IMO, this bill doesn’t really line up well with the classic small / mid sized distinctions, but that’s political. Everyone wants to say they helped small businesses, and this is aimed in that general direction.

“In the United States, the Small Business Administration establishes small business size standards on an industry-by-industry basis, but generally specifies a small business as having fewer than 500 employees for manufacturing businesses and less than $7.5 million in annual receipts for most non-manufacturing businesses.[4][5] The definition can vary by circumstance—for example, a small business having fewer than 25 full-time equivalent employees with average annual wages below $50,000 qualifies for a tax credit under the health care reform bill Patient Protection and Affordable Care Act.[6]” https://en.wikipedia.org/wiki/Small_business#Size_definition...

A sub 500 person factory could easily be too large for this bill, on the other hand an ACA small business would be tiny by comparison.

[TheTacoMerchant]

You have mis-read the content. It state's that only companies with less than $1.07 bil can qualify.

Not sure about you, but my mom and pop definitely fall in that category.

[granzymes]

No I read it right. The newsletter makes it sound like Doordash is somehow abusing a loophole intended for SMBs when in fact the reduced reporting requirements are obviously for companies of their size.

Both Doordash and your mom and pop qualify (if your mom and pop decided to IPO).