{"ok":true,"canonical_url":"https://dealroom.so/glossary/alternative-size-standard","api_url":"https://dealroom.so/api/public/glossary/alternative-size-standard","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"alternative-size-standard","term":"Alternative size standard","group":"The loan itself","definition":"This is an alternate eligibility test for businesses that exceed the standard size limits (revenue or employees) but still need SBA loan access.","what_it_means":"If a business is too large by the primary NAICS code size standard, it might still qualify if its tangible net worth is less than $15 million AND its average net income for the previous two fiscal years is less than $5 million. This is a common path for larger small businesses.","url":"https://dealroom.so/glossary/alternative-size-standard","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"slug":"tangible-net-worth","term":"Tangible net worth","url":"https://dealroom.so/glossary/tangible-net-worth"}],"related_questions":[{"question":"What specific documentation is required for a business to qualify as 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-business-to-qualify-as-small-under-the-alter"},{"question":"What are the financial criteria for a business to qualify as 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-are-the-financial-criteria-for-a-business-to-qualify-as-small-under-the-alternative-s"},{"question":"What specific documentation is required for a business to be considered 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-business-to-be-considered-small-under-the-al"},{"question":"What is the maximum tangible net worth for a business to be considered 'small' under the alternative size standard?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-tangible-net-worth-for-a-business-to-be-considered-small-under-the-alt"},{"question":"How does common management trigger affiliation for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-common-management-trigger-affiliation-for-size-standard-purposes"},{"question":"How does the SBA define \"small business\" for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-small-business-for-size-standard-purposes"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Alternative size standard","url":"https://dealroom.so/glossary/alternative-size-standard","source_type":"DealRoom Data"}}