SBA Defines "Small Business"
The Small Business Administration (SBA) has a host of programs and loan incentives targeted at small business. So, the essential question: what is an SBA small business?
The SBA defines a small business as one that is:
- independently owned and operated
- is organized for profit
- and is not dominant in its field
The SBA also takes into account the size of the business using quantitative indicators.
- size standard eligibility is based on the average number of employees for the preceding 12 months
- alternatively, it can be based on sales volume over a 3-year span
Here are some of the size standard limits, each is dependent on particular features of the type of business.
- for Manufacturing: 500-1500 employees
- for Wholesale: 100-500 employees
- for Services: $2.5 to $21.5 million in annual receipts
- for Retail: $5.0 to $21 million annual receipts
- for General and Heavy Construction: $13.5 to $17 million in general construction annual receipts
- for Special Trade Construction: up to $7 million in special trade construction annual receipts
- for Agriculture: $.5 to 9 million in annual receipts
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