Creators are now classified as small businesses, but what does that actually mean?
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 October 15, the U.S. Small Business Administration (SBA) released the first-ever small business classification guidance specifically for content creators. This move followed the SBA's proposal a few months earlier to simplify the classification process, aiming to bring the numerous creator-led businesses under the SBA's support system.
Now, these businesses will fall under the Motion Picture and Video industries category within the SBA. While creator-led businesses have been eligible for SBA support for years, depending on fulfilling criteria such as citizenship, business location, size, and credit availability, the confusion persisted regarding which North American Industry Classification System (NAICS) tier they should utilize when seeking SBA programs.
The implications of this new classification for the creator economy and its potential benefits for creators remain to be seen, as we explore the implications in this article. For more on media, marketing, and the future of TV, stay updated by signing up for Digiday newsletters.
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