Home Business What counts as a small business? – Fox Business

What counts as a small business? – Fox Business

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OTR Media Group President and CEO Sherard Duvall says his small media-production business applied for loans from seven lenders and still hasn’t received any government aid.

Many small businesses have had to take out loans or change their business models because economic uncertainty caused by the coronavirus pandemic and experts fear that some will close down for good.

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The United States has more than 30 million small businesses, so what counts as a small business?

According to the Small Business Administration, which is distributing forgivable Paycheck Protection Program loans to help small businesses keep their employees on the payroll, a small business can employ more than 500 people and still qualify.

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Some businesses with more than 500 employees can still qualify for small business benefits from the government, depending on their industry and how much business they do.

Now Open sign is displayed at a stationary store in Evanston, Ill., Friday, May 29, 2020. (AP Photo/Nam Y. Huh)

For example, companies in sectors including natural gas, photocopying equipment manufacturing and chocolate-making can have more than 500 employees and count as small businesses provided they meet other SBA requirements.

The SBA’s definition doesn’t limit small businesses to mom-and-pop operations.

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Meanwhile, a poll released by the Chamber of Commerce earlier in June found that one in five small businesses are closed — 19 percent temporarily and 1 percent permanently.

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Kyle Denis, who owns two Apex Outfitter stores in North Carolina, told FOX Business he had to temporarily close one of his locations that was looted on top of struggling because of the pandemic. Coronavirus was already making it difficult for him to get inventory into his stores, which sell outdoor gear, skateboards and more.

“The coronavirus has changed everything,” he said. “We already had the chips stacked against us, and then something like this happens ⁠— it’s a gut punch.”

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