Small business owner or farmer?

By: 
M. Frahm

Our current government is doing a lot for small business but if you are a farmer, it is unlikely you will receive the same benefits as other small businesses.

You will be classified as a small farmer if you make less than $750,000 in a year and there is no limit on the number of employees you may have. 

If you are a contractor you can make $15,000,000 and be a small business. 

Retail small business stores can make $7,500,000. 

An online auction or a hospital can still be considered a small business when making $38,000,000.

Manufacturing classification as a small business is by number of employees and varies depending on what is manufactured. On the low end there are the made-by-hand goods that max out at 100 employees if they are to be called a small business but on the upper end some kinds of vehicle manufacturing can have 1,500 employees and still be considered small business.

Different types of wholesale trades have different standards but all will be classified as a small business if they have fewer than 100 employees. Most small business wholesalers get to have up to 200 employees and a few wholesalers are allowed 250 employees.

A financial institution is a small business if it has less than $550 million in assets.

https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf is an SBA chart listing these things and much more.

Here is a paraphrase from an article by Steve Cooper that appeared in Forbes on Sept. 20, 2012:

According to the United States Small Business Administration’s (SBA) Office of Advocacy, 99.7 percent of all U.S. firms are small businesses. This classification is important because loans, government contracts and many other tools are put in place to help small businesses compete with large corporations. Of course these tools are also in place to spur growth and innovation.

To put government classifications in context, The Huffington Post is estimated to have over 200 employees and is considered a small business. 

So, if a small business with just 10 or 20 employees bids for a job, or needed to acquire a small business loan and has to compete with a behemoth like HuffPost when finite resources are available, is the SBA really doing the little guy a favor with their current definitions?