How does SBA define a small business?
The Small Business Act defines a small business as a concern that is organized for profit; has a place of business in the U.S.; operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor; is independently owned and operated; and is not dominant in its field on a national basis. The concern must meet the numerical small business size standard for its industry. The most common size standards are as follows: • 500 employees for most manufacturing and mining industries; • 100 employees for all wholesale trade industries; • $7 million for most retail and service industries; • $33.5 million for most general and heavy construction industries; • $14 million for all special trade contractors; • $0.75 million for most agricultural industries. For a comprehensive list of size standards, visit the Small Business Administration website.
