How do you define a small business? That depends on the industry. What is considered a small business in one line of work may not qualify to be considered a small business in another field. Many a businessperson has researched possible SBA loans and gotten excited, only to find out that they do not fit the criteria.
The SBA has very specific guidelines for what constitutes a small business, so you should consult with them to find out where your business falls into. The SBA has to take a lot into consideration when it shapes the criteria for small businesses within different industries. It has to look at start-up costs, barriers to entry, competition, growth trends and other factors. This actually works in your favor because a flower shop should not be measured by the same criteria as a t-shirt manufacturer.
The following are some general guidelines for the maximums for small businesses in different industries:
Agriculture: 1/2 million dollars or less
Retail: Five million dollars or less
Manufacturing: 500 employees or less
Wholesale trade: 100 employees or less
