For Small Business loans made to borrowers who would not have revenue such as a county Sherriff's Office, Cities, or other government/public office borrowers should revenue code of 3 be reported on the LR?

How does a governmental agency not have revenue? They usually have taxes, fees and other assessments, unless I am missing something. Also, how are they a "small business?

It sounds like the borrowers you refer to are not business entities, but rather government entities so they don't qualify anyways.