{"ok":true,"canonical_url":"https://dealroom.so/glossary/size-eligibility","api_url":"https://dealroom.so/api/public/glossary/size-eligibility","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-eligibility","term":"Size Eligibility","group":"Reading the business","definition":"This refers to the SBA's rules that determine if a business is \"small\" enough to qualify for an SBA loan, based on factors like revenue or employee count. Your target business must meet these standards.","what_it_means":"The SBA has specific size standards based on NAICS codes, either by average annual gross revenue or number of employees. Affiliation rules can complicate this, as the SBA may count the revenue or employees of other businesses you own or are connected to. It's critical to verify the target business's size eligibility, including any potential affiliations, early in due diligence.","url":"https://dealroom.so/glossary/size-eligibility","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":"terms-conditions-eligibility","title":"7(a) Loan Program — Terms, Conditions, and Eligibility","official_url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility","official_label":"View on SBA.gov","authority_tier":5,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/terms-conditions-eligibility"}],"related":[{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"slug":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"gross-revenue","term":"Gross Revenue","url":"https://dealroom.so/glossary/gross-revenue"}],"related_questions":[{"question":"How are SBA small business size standards determined for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/how-are-sba-small-business-size-standards-determined-for-loan-eligibility"},{"question":"What are the current size standards for a manufacturing business eligibility?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-size-standards-for-a-manufacturing-business-eligibility"},{"question":"Why is the 'SBA Table of Size Standards' important for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/why-is-the-sba-table-of-size-standards-important-for-loan-eligibility"},{"question":"Why does the SBA combine the size of related businesses when checking loan eligibility?","url":"https://dealroom.so/sba-loans/basics/why-does-the-sba-combine-the-size-of-related-businesses-when-checking-loan-eligibility"},{"question":"How does a lender determine a business's size standard eligibility for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-a-business-s-size-standard-eligibility-for-a-7-a-loan"},{"question":"If the business I am acquiring has multiple locations, how does that affect SBA size standard eligibility?","url":"https://dealroom.so/sba-7a/questions/if-the-business-i-am-acquiring-has-multiple-locations-how-does-that-affect-sba-size-standa"}]},"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 Eligibility","url":"https://dealroom.so/glossary/size-eligibility","source_type":"DealRoom Data"}}