Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

How much annual revenue must a small business have to be considered eligible by SBA?

1. Less than $1 million

2. Less than $5 million

3. Less than $21.5 million

4. Less than $50 million

The correct answer is: Less than $21.5 million

The correct answer reflects the guidelines set forth by the Small Business Administration (SBA) regarding eligibility for small businesses. The SBA has established various criteria, including revenue thresholds, to determine what constitutes a small business in different sectors. Specifically, for many industries, the revenue limit is often set at $21.5 million annually. This figure allows a sizable number of businesses to qualify for assistance and funding programs designed to support small enterprises in their growth and development. Understanding this threshold is essential for business owners seeking SBA loans or other resources, as it directly impacts their eligibility. The choices representing smaller revenue limits would exclude many businesses that might otherwise qualify. Thus, recognizing the $21.5 million figure helps aspiring business owners align their operations with SBA requirements and access critical support.