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

Related Resources:

• SBA Small Business Size Standards FAQ (Small Business Administration)
• Small Business Start-Up Toolkit (FindLaw)
• SBA ARC Loans: What Counts as a 'Viable' Small Business? (FindLaw's Free Enterprise)
• SBA Asks: Are You Ready to Start a Business? (FindLaw's Free Enterprise)