Definition: Small businesses are critical to the growth of the U.S. economy. They contribute 65% of all new jobs. Put simply, without small businesses, the economy won't grow.
But what exactly is a small business? They are specifically defined by the Federal Government. These definitions are important if you are looking for Federal grants or loans.
Small business loans and small business grants may be awarded to companies that meet the size standards that the U.S. Small Business Administration (SBA) has established for most industries. The most common size standards are as follows:
- 500 employees for most manufacturing and mining industries.
- 100 employees for all wholesale trade industries.
- $6 million for most retail and service industries.
- $28.5 million for most general & heavy construction industries.
- $12 million for all special trade contractors.
- $0.75 million for most agricultural industries.
