we have a customer who had a restaurant and we gave her a loan. The restaurant closed a few years ago but she continued to pay on her loan. We just did a modification to the loan to change the terms. She continues to promise to pay as her personal obligation, and there is no actual business. Even though this was done in our commercial loan area I see it as a personal loan. They listed the Call Report as a 4, but I think that's wrong.
Would you consider this a small business loan?

As long as you only modified the loan and did not refinance into personal debt, I do not think a modification changes the nature/purpose of the original loan.

I would agree, and unless it's a line of credit, the purpose of the loan has not changed. She used that money for commercial and industrial purposes.