Get Factsheet MO 12454 - SBA - Sba

The second most popular attribute used to define the SMB market is annual revenue: small business is usually defined as organizations with less than $50 million in annual revenue; midsize enterprise is defined as organizations that make more than $50 million, but less than $1 billion in annual revenue.

SBA assigns a size standard to each NAICS code. Most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business.

SBA's Response SBA agrees with commenters that its proposal to increase the size standard for NAICS 541330 from $16.5 million to $22.5 million will help small businesses in the industry, especially those near the size standard, to retain access to SBA's procurement and financial assistance programs for a longer period.

In addition to meeting the numerical standards for small, your business must: Be a for-profit business of any legal structure. Be independently owned and operated. Not be nationally dominant in its field. Be physically located and operate in the U.S. or its territories.

SBA assigns a size standard to each NAICS code. Most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million, will qualify as a small business. However, there are exceptions by industry.

The SBA 7(a) Loan program SBA 7(a) loans are the most popular type of SBA loan. These loans are federally guaranteed term loans with a maximum loan amount of $5 million. Business owners often use SBA 7(a) loans to finance working capital needs, buy an existing business, refinance debt, or purchase new equipment.

Size standards While the Consumer Financial Protection Bureau uses the SBA's general qualifications to define small business, the CFPB's size standard states that a business's gross annual revenue for the preceding fiscal year must be $5 million or less.

A small business will automatically be designated as a microbusiness, if gross annual receipts are less than $5,000,000; or the small business is a manufacturer with 25 or fewer employees.