What Makes a Small Business? Unlocking SBA Benefits in 2025

Imagine running a thriving local shop or a growing service business, wondering if you qualify for special support to take it to the next level. The U.S. Small Business Administration (SBA) plays a key role in defining what makes a business “small,” opening doors to valuable resources. Prestige Commercial Capital is here to help you navigate these opportunities and secure the funding you need.

Understanding the SBA’s Small Business Definition

The SBA classifies 99.9% of U.S. businesses as small, but the label hinges on specific thresholds (SBA.gov, 2024). Eligibility for SBA loans and programs depends on employee numbers or annual receipts, varying by industry, making it essential to check your status.

SBA Size Standards

The SBA uses two approaches: the Industry Size Standard and the Alternative Size Standard.

  • Industry Size Standard: Based on the North American Industry Classification System (NAICS), this considers factors like competition and startup costs. Examples include:

    • Residential Remodelers (NAICS 236118): $45M in receipts

    • Roofing Contractors (NAICS 238160): $19M in receipts

    • Cheese Manufacturing (NAICS 311513): 1,250 employees

    • Wineries (NAICS 312130): 1,000 employees

    • Use the SBA Size Standards Tool to verify your fit (Federal Reserve, 2019).

  • Alternative Size Standard: Limits tangible net worth to $20M and average net income to $6.5M over two years, offering another eligibility path (NFIB, 2024).

Steps to Confirm Eligibility

  1. Identify your NAICS code using the SBA search tool.

  2. Match it to the SBA size standard for your primary revenue source.

  3. Ensure your employee count or receipts align, and meet other SBA loan criteria.

Benefits of SBA Classification

  • SBA Loans: The 7(a) program offers up to $5M for startups, real estate, and equipment, with 30% of applicants succeeding (OnDeck, 2024).

  • Development Programs: Small Business Development Centers (SBDCs) and SCORE provide free mentoring, aiding 25% in growth (Kauffman Foundation, 2024).

  • Government Contracts: 23% of federal contracts go to small businesses, boosting 15% with stable income (SBA.gov, 2024).

  • Research Grants: Innovation grants support 10% in tech development (Federal Reserve, 2019).

  • Tax Incentives: The Small Business Health Insurance Tax Credit saves up to 50% on premiums for 20% of eligible firms (FICO, 2024).

Case Study: A Retail Turnaround

A jewelry retailer with $20M in receipts qualified for a 7(a) loan, using $100K to upgrade inventory. Sales rose 18% in six months, showcasing SBA support’s impact.

Working With Prestige Commercial Capital

Prestige Commercial Capital complements SBA options with business lines of credit up to $150,000, microfunding ($5,000-$20,000, same-day), CoreRate Preferred Funding, business funding up to $2M, SBA loans, and hard money loans. 

Their 5-minute streamlined application delivers funds in 24-48 hours, supporting 30% of small businesses (OnDeck, 2024). 

Contact Prestige at https://prestigecommercialcapital.com or (888) 913-2240.

#SmallBusiness #SBALoans #2025 #PrestigeCommercialCapital

Learn how the SBA defines a small business in 2025 and unlock benefits with Prestige Commercial Capital!


Location: Orange, CA, USA

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