How Small Is a Small Business?

April 13, 2006

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The general rule is that a business is small enough to qualify for SBA assistance if it has less than 500 employees. However, this general rule is subject to industry-by-industry variations. Below is a summary of the industry standards that the SBA has used in the past to define a business as "small." For more precise descriptions of the standards see this SBA page.

Did You Know?

The SBA's definition of "small business" is broad enough to encompass approximately 99 percent of U.S. businesses.

Type of Concern	Standards
Manufacturing	The maximum number of employees may range from 500 to 1,500 depending upon the type of product being manufactured.
Wholesaling	The total number of employees may not exceed 100.
Providers of services	Annual receipts may not exceed $3.5M to $14.5M, depending upon the industry.
Retailing	Annual receipts may not exceed $3.5M to $13.5M depending upon the industry.
Construction	Annual receipts may not exceed $9.5M to $17M, depending upon the industry.
Special trade construction	Annual receipts may not exceed $7M.
Agricultural	Annual receipts may not exceed $0.5M to $3.5M, depending upon the industry.