Creators are now classified as small businesses, but what does that actually mean?

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.

What does the SBA classification signal about the state of the creator economy?

The creator economy’s rapid growth has creators, companies, and agencies scrambling to build the infrastructure up underneath it to sustain that growth. The SBA classification helps with both sustainability and legitimization. 

“For over a decade, creators have shaped culture, commerce, and consumer behavior, yet have largely been treated as marketing expenses rather than businesses,” said Daniel Abas, founder and president of the Creators Guild of America. Now, they can be seen in the same light as traditional businesses.

“When a federal agency formally recognizes millions of creator-led businesses, the people who decide where money goes start to treat creators as an asset class,” said Lauren Lyster, vp and head of social media at Go Fish Digital. “That includes banks, CFOs and procurement teams.”

Lyster said this classification could mean brands no longer pay creators like a media buy, but consider them more traditional suppliers.

“This is a first step toward understanding and recognizing the sheer size and value of the U.S. creator economy,” said Avi Gandhi, chair of government advocacy for the CGA.

Terra Fernandez, vp of content partnerships at Canvas Worldwide said the federal government’s move reinforces what the industry has long known: “This isn’t a side hustle economy anymore. It’s a real business ecosystem.”

What does the classification actually mean?

So, is this just window dressing? Not really, but it’s also not technically a new benefit. 

“Creators were already eligible for SBA support if they met program requirements,” explained Iluka Enright, associate director of influencer marketing at Movers+Shakers.

It just wasn’t clear if they met them.

“They had no obvious industry code to put on the forms. That left loan officers guessing at how to judge a business built on YouTube ad revenue, brand deals, and affiliate income,” said Lyster.

Rather than trying to figure out which one of the thousands of NAICS codes they fall under, the SBA is now flat-out telling them: 5121, Motion Picture and Video Industries. SBA put creators under this classification because they so often film, produce, and edit their own content, and it’ll make filling out paperwork and tracking its progress much easier.

What do creators gain from the classification?

Creators now have easier access to SBA loans, which include micro loans of $50,000 or less and the 7(a) loan program which has a maximum amount of $5 million.

According to Gandhi, the SBA delivers around $45 billion in loans each year through the U.S. banking system. These loans can help creators build their businesses in a variety of ways — they can buy equipment, hire employees to help with editing or PR, and otherwise expand their operations and build structure around them.

Visa’s 2025 creator report found that 88 percent of creators who responded plan on growing their business in the next year, with 86 percent of them using personal funds to finance their work. This funding works while creators are earning money, but if they have a dip in engagement or a gap in branded partnerships, using up their own savings to build their business could become a problem. The creators who sell their catalogue or future revenue are giving up a share of their income. 

Creators looking for other ways to earn money can go the creator capital markets route, or get into equity investment. The SBA loans offer a more traditional and predictable route. 

With an SBA loan, “a creator could hire an editor, rent a studio or build a product line without signing away equity or IP,” said Lyster. 

Creators can also get support through other SBA resources, like its Small Business Development Centers, which helps with the nitty gritty parts of running their own businesses like writing contracts and bookkeeping. 

Could this change brand deal negotiations?

In terms of how this classification could affect brand deals, sentiment is mixed. Gandhi believes the SBA classification is “unlikely” to alter how brand deals are structured or negotiated, but does think it could change how creators build their businesses beyond typical brand deals.

“Access to financing and mentorship means more creators will be able to build more capital-intensive businesses, like consumer products, local restaurants and retail, and real-world services,” he said. 

Shira Lazar, creator and creator advocate, thinks brand deal negotiations could change due to the SBA’s classification, which might convince brands to stop thinking about creators as strictly marketing channels and look at them as their own media businesses and potential strategic partners. 

“Having greater access to capital means creators may be less dependent on taking the next brand deal just to keep their business running,” Lazar said. “That can give them more flexibility to negotiate fair rates, payment terms, ownership, and longer-term partnerships.” 

Lyster agreed that the further professionalization that comes with the SBA classification might give creators more leeway to be pickier with brand deals. She also noted that creators who show up as “a properly set-up small business” are more likely to get through vendor onboarding and procurement faster. 

“Some brands may also be able to count that spend toward small-business supplier goals,” Lyster suggested.

Are there any downsides?

Crucially, the SBA is proposing an exception to the size standards rule for the NAICS Motion Picture and Video Industries qualification because creator-led businesses tend to be incredibly small. The ruling on whether creators will get that exception will come after Nov. 20, when the SBA’s public comment period closes. If the exception doesn’t go through, it could mean that less creators qualify for SBA programs. 

Lyster also noted that SBA loans are taking on debt, and a creator who might have a major falloff after a platform’s algorithm change could be “stuck with real personal liability.”

There’s also the chance that more financially independent creators mean even higher creator fees, which could make the market more competitive. 

Still, others warned to be aware of too much fanfare. 

“It’s important to recognize that this is a relatively minor change rather than a sweeping shift in how creator businesses operate,” noted Kyle Hjelmeseth, CEO and co-founder of G&B Digital Management. “The bigger opportunity is what comes next. As these conversations continue, I hope we’ll see more meaningful resources and support become available.”