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Are small businesses allowed to use the standard Google Apps service (10 users)?

I am being told by an IT administrator that the standard Google Apps service (limit of 10 users) is not available to any business per Google's TOS. 

According to this administrator, this option is only available to "groups" that do not have a legal business structure - PTA's, knitting clubs, etc.  The only option, according to this person, is to subscribe to the Google Apps for Business service.  Is this true, or is this just a ploy to push up this administrators sales numbers with Google (they are an authorized Google Apps Reseller)?
 

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Hovanes Manucharyan, CEO of Linkgard, a Google Apps Resell... (more)
I realize this post is very late, but just in case anyone runs into it in the future.

When this question was originally posed (mid-November 2011) it was not true, Google Apps was free for any business with 10 employees or less. However, today, Google Apps is no longer available for free. Google Apps Pricing – standard version no longer available for new users.
Comment • Insert a dynamic date here
Hovanes Manucharyan
Cameron Crest, CIO, Business IT Consultant, Owner Cr... (more)
1 vote by Jamie Meredith
Yes,  A small business can use the free version of Google Apps up t...
Cameron Crest
 
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