{"ok":true,"canonical_url":"https://dealroom.so/glossary/small-business","api_url":"https://dealroom.so/api/public/glossary/small-business","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":"small-business","term":"Small business","group":"The loan itself","definition":"For SBA loan purposes, a small business is defined by specific size standards, usually based on average annual revenue or number of employees, which vary by industry.","what_it_means":"To qualify for an SBA 7(a) loan, the business you are acquiring must meet the SBA's definition of a \"small business.\" This is a critical eligibility requirement. Your lender will check the NAICS code of the business against the SBA's size standards to ensure compliance.","url":"https://dealroom.so/glossary/small-business","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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"eligibility","term":"Eligibility","url":"https://dealroom.so/glossary/eligibility"}],"related_questions":[{"question":"Does the Small Business Administration (SBA) ever directly lend money to small businesses?","url":"https://dealroom.so/sba-loans/basics/does-the-small-business-administration-sba-ever-directly-lend-money-to-small-businesses"},{"question":"Is the SBA 7(a) program widely used by small businesses?","url":"https://dealroom.so/sba-loans/basics/is-the-sba-7-a-program-widely-used-by-small-businesses"},{"question":"What is an SBA 7(a) loan specifically for small businesses?","url":"https://dealroom.so/sba-loans/basics/what-is-an-sba-7-a-loan-specifically-for-small-businesses"},{"question":"Are SBA 7(a) loans only for very small, startup businesses?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-very-small-startup-businesses"},{"question":"How does the SBA guarantee encourage banks to lend to small businesses?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-guarantee-encourage-banks-to-lend-to-small-businesses"},{"question":"Are SBA 7(a) loans only for specific kinds of small businesses?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-specific-kinds-of-small-businesses"}]},"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 — Small business","url":"https://dealroom.so/glossary/small-business","source_type":"DealRoom Data"}}