Creators are now classified as small businesses, but what does that actually mean?
Digiday ·
The Small Business Administration has officially welcomed creators under its umbrella; let's unpack what that means for brands, creators, and the economy at large.
On Oct. 15, the U.S. Small Business Administration (SBA) issued the nation’s first small business classification guidance for content creators. This comes just a few months after the organization, which helps Americans build and scale small businesses, proposed amendments to simplify the classification so that the millions of creator-led businesses could come into the SBA tent.
Creator-led businesses will now be classified under the Motion Picture and Video industries portion of the SBA. Though they have been eligible for support from the organization for years (when they meet the program requirements which include citizenship, business location, size, and credit availability), it’s been unclear which North American Industry Classification System (NAICS) they should use when applying for programs.
What does this classification mean about the state of the creator economy, and does it actually serve to help creators or is it just window dressing? We break it down for you.
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