The Small Business Act defines an eligible small business as one that is independently owned and operated and not dominant in its field of operation. The act also states that in determining what is a small business, the definition shall vary from industry to industry to adequately reflect industry differences. The SBA has therefore developed size standards that define the maximum size of an eligible business. Most businesses are considered small. However, these represent general definitions and in some cases are further defined by a specific sic code. Industry Retail and Service $3.5 - $13.5 Million Construction $7 - $17 Million Agriculture $ .5 - $3.5 Million Wholesale No more than 100 employees Manufacturing 500 - 1500 employees When affiliations exist with other companies (for example through common ownership, directorships or by contractual arrangements), the primary business activity must be determined both for the applicant business as well as for the entire affiliated group. In order to be eligible for financial consideration, the applicant must meet the size standard for its primary business activity and the affiliated group must meet the standard for its primary business activity.
