{"ok":true,"canonical_url":"https://dealroom.so/glossary/north-american-industry-classification-system","api_url":"https://dealroom.so/api/public/glossary/north-american-industry-classification-system","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":"north-american-industry-classification-system","term":"North American Industry Classification System","aka":"NAICS","group":"Reading the business","definition":"The North American Industry Classification System (NAICS) is a standard used by federal statistical agencies to classify business establishments into industry categories. It helps determine if a business meets SBA size standards and eligibility rules.","what_it_means":"Every business has a primary NAICS code, which your lender will use to check if the business is eligible for an SBA loan and if it meets the SBA's size standards (based on revenue or number of employees). If the business's NAICS code falls under an ineligible industry or exceeds size limits, your loan cannot proceed. Verify this early.","url":"https://dealroom.so/glossary/north-american-industry-classification-system","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":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"}],"related_questions":[{"question":"What specific requirements apply to a franchise system for SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-loans/basics/what-specific-requirements-apply-to-a-franchise-system-for-sba-7-a-loan-eligibility"},{"question":"How does the SBA evaluate an emerging franchise system for 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-evaluate-an-emerging-franchise-system-for-7-a-loan-eligibility"},{"question":"If I am buying a franchise, does the SBA need to approve the franchise system?","url":"https://dealroom.so/sba-loans/basics/if-i-am-buying-a-franchise-does-the-sba-need-to-approve-the-franchise-system"},{"question":"How do I check if a specific franchise system is eligible for SBA 7(a) financing?","url":"https://dealroom.so/sba-7a/questions/how-do-i-check-if-a-specific-franchise-system-is-eligible-for-sba-7-a-financing"},{"question":"What if the business I'm buying has poor financial records or no formal accounting system?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-poor-financial-records-or-no-formal-accounting-system"},{"question":"How does the SBA evaluate the eligibility of a specific franchise system for 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-evaluate-the-eligibility-of-a-specific-franchise-system-for-7-a-loans"}]},"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 — North American Industry Classification System","url":"https://dealroom.so/glossary/north-american-industry-classification-system","source_type":"DealRoom Data"}}