{"ok":true,"canonical_url":"https://dealroom.so/glossary/size-determination","api_url":"https://dealroom.so/api/public/glossary/size-determination","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":"size-determination","term":"size determination","group":"Reading the business","definition":"The SBA's process of evaluating if a business meets its \"small business\" definition, primarily based on revenue or employee count. This is a strict eligibility requirement for a 7(a) loan.","what_it_means":"The SBA sets size standards by NAICS code. Your lender will perform a size determination, which includes evaluating potential affiliations. If the business, when combined with any affiliated entities, exceeds the revenue or employee threshold for its industry, it's ineligible for an SBA loan. Ensure all ownership and affiliation details are accurate.","url":"https://dealroom.so/glossary/size-determination","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":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"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":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"}],"related_questions":[{"question":"What constitutes 'common management' triggering affiliation for SBA 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-common-management-triggering-affiliation-for-sba-7-a-size-determination"},{"question":"When does a prior contractual relationship create affiliation for 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-a-prior-contractual-relationship-create-affiliation-for-7-a-size-determination"},{"question":"When does identity of interest trigger affiliation for size determination under SBA rules?","url":"https://dealroom.so/for-lenders/questions/when-does-identity-of-interest-trigger-affiliation-for-size-determination-under-sba-rules"},{"question":"How does ownership of options or warrants affect affiliation determination for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-ownership-of-options-or-warrants-affect-affiliation-determination-for-sba-size-st"},{"question":"How do shared administrative services, like HR or accounting, automatically trigger affiliation for size determination?","url":"https://dealroom.so/for-lenders/questions/how-do-shared-administrative-services-like-hr-or-accounting-automatically-trigger-affiliat"},{"question":"When does common management or shared facilities trigger affiliation for SBA 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-common-management-or-shared-facilities-trigger-affiliation-for-sba-7-a-size-dete"}]},"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 — size determination","url":"https://dealroom.so/glossary/size-determination","source_type":"DealRoom Data"}}