{"ok":true,"canonical_url":"https://dealroom.so/glossary/north-american-industry-classification-system-code","api_url":"https://dealroom.so/api/public/glossary/north-american-industry-classification-system-code","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-code","term":"North American Industry Classification System code","aka":"NAICS code","group":"Reading the business","definition":"A standardized code used by federal agencies to classify business establishments by industry. This code determines if the business you're buying meets SBA size standards and eligibility rules.","what_it_means":"Every business has a NAICS code, which the SBA uses to check eligibility for a 7(a) loan, specifically against size standards and ineligible business types. Your lender will verify the business's NAICS code early in the process. Ensure the primary business activity aligns with an eligible code.","url":"https://dealroom.so/glossary/north-american-industry-classification-system-code","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":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"How does an incorrect NAICS code on SBA Form 1919 impact 7(a) loan eligibility for a borrower?","url":"https://dealroom.so/for-lenders/questions/how-does-an-incorrect-naics-code-on-sba-form-1919-impact-7-a-loan-eligibility-for-a-borrow"},{"question":"How does the SBA determine if a business is considered \"small\" for eligibility based on its NAICS code?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-a-business-is-considered-small-for-eligibility-based-on-its-"},{"question":"How does the SBA handle a loan where the business assets are mostly intellectual property, such as software code?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-handle-a-loan-where-the-business-assets-are-mostly-intellectual-property-"},{"question":"What are the consequences if the NAICS code entered into E-Tran differs from the primary business activity in the loan narrative?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-the-naics-code-entered-into-e-tran-differs-from-the-primary-b"},{"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"}]},"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 code","url":"https://dealroom.so/glossary/north-american-industry-classification-system-code","source_type":"DealRoom Data"}}