SBA Defines "Small Business" - Free Enterprise
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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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