1071 Preparation Guide | Article 6 Gross Revenue – One of the Identifiers of Small Businesses

At TCA, we’ve already been fielding calls from clients confused about gross revenue under 1071.

It is a key factor when identifying small business loans for the count of originations for the prior two years. Under 1071, a small business is defined as one with a gross revenue of $5 million or less.

Financial institutions first need to understand the difference between gross revenue and income. Gross revenue is the total dollar amount earned from business sales, which is known as gross revenue or gross receipts listed on the business income statement or cash flow statement.

Income represents the business’s net dollars after all expenses are deducted, including salary and wages, cost of goods, raw materials, and taxes.

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