Did you know that out of the 6 million US businesses with employees, over 98% are defined as a small business? In fact, small businesses are responsible for 60% to 80% of all new jobs created in America. Small businesses are so important that the federal government offers the 504 Loan Program designed to help grow small businesses. What exactly, then, defines a small business?
While the government has strict sizing rules that define a small business, you will generally qualify as a small business concern for Community Business Finance's 504 Loan Program based on the following:
Your business has less than $15,000,000 in net worth and made less than $5,000,000 in net profit per year, averaged over the last two years.
Small businesses are bigger than you imagined.
The SBA generally defines it as a business that is independently owned and operated in the United States, organized for profit, and does not exercise a major influence in its field. Influence is determined by size standards established for specific industries. These size standards are based on the average number of employees for the preceding twelve months or average annual revenues over the past three years.
The industries are defined under the North American Industry Classification System (NAICS). You can visit the NAICS Website for detailed descriptions of activities covered by each NAICS code. NAICS is a self-assigned system. Use the provided search tools to figure out the code that is closest to your line of business. Some businesses will have more than one applicable NAICS code.
In addition to being eligible for Community Business Finance's 504 Loan Program, understanding the rules and regulations that define a small business can help owners take advantage of government programs and opportunities reserved exclusively for small businesses. Having your small business certified can provide you with advantages over your competition.
Community Business Finance is dedicated to helping businesses grow. We have the knowledge and experience to be your partner in securing a 504 loan to finance your business goals. Contact us to find out how we can help you.