What does the small business administraition consider a small business?

A small business is an concern that is organized for profit, with a place of business in the United States, and which operates primarily within the United States or makes a significant contribution to the U.S. Economy through payment of taxes or use of American products, materials or labor. Further, the concern cannot be dominant in its field, on a national basis. Finally, the concern must meet the numerical small business size standard for its industry.

SBA has established a size standard for most industries in the U.S.Economy. The most common size standards are as follow: 500 employees for most manufacturing and mining industries 100 employees for all wholesale trade industries $6.5 million for most retail and service industries $31 million for most general & heavy construction industries $13 million for all special trade contractors $0.75 million for most agricultural industries About one-fourth of industries have a size standard that is different from these levels. They vary from $0.75 million to $32.5 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees.

Several SBA programs have either alternative or unique size standards, such as the Small Business Investment Company Program For more in-depth information about SBA programs and services go to www.sba.gov.

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