{"ok":true,"canonical_url":"https://dealroom.so/glossary/size-standard-compliance","api_url":"https://dealroom.so/api/public/glossary/size-standard-compliance","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-standard-compliance","term":"Size standard compliance","group":"The loan itself","definition":"This refers to whether the target business meets the SBA's definition of a \"small business\" based on its industry, revenue, or employee count. It's a fundamental eligibility requirement for an SBA loan.","what_it_means":"For a 7(a) loan, the business you're buying must fit the SBA's size standards, typically based on average annual revenue over the past three years or number of employees. If the target business is too large, it's ineligible for SBA financing. Verify the NAICS code and corresponding size standard early in due diligence.","url":"https://dealroom.so/glossary/size-standard-compliance","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":"ineligible-business-list","term":"Ineligible business list","url":"https://dealroom.so/glossary/ineligible-business-list"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"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"},{"question":"How does common management trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-common-management-trigger-affiliation-for-sba-size-standard-purposes"},{"question":"When does a shared resource agreement create affiliation for SBA size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-shared-resource-agreement-create-affiliation-for-sba-size-standard-calculation"},{"question":"How does the SBA define 'affiliation' when determining a business's size standard?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-affiliation-when-determining-a-business-s-size-standard"},{"question":"When does a contractual relationship between two businesses trigger affiliation for size standard calculations?","url":"https://dealroom.so/for-lenders/questions/when-does-a-contractual-relationship-between-two-businesses-trigger-affiliation-for-size-s"}]},"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 standard compliance","url":"https://dealroom.so/glossary/size-standard-compliance","source_type":"DealRoom Data"}}