{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-the-naics-code-entered-into-e-tran-differs-from-the-primary-b","api_url":"https://dealroom.so/api/public/questions/what-are-the-consequences-if-the-naics-code-entered-into-e-tran-differs-from-the-primary-b","question":"What are the consequences if the NAICS code entered into E-Tran differs from the primary business activity in the loan narrative?","topic":"E-Tran & Authorization","audience":"lender","bot_mode":"lender","short_answer":"Discrepancies between the NAICS code in E-Tran and the loan narrative can lead to processing delays, requests for clarification, and potentially an ineligible loan if the incorrect code results in a size standard violation.","rule":"The NAICS code determines the applicable size standard for a business and is a critical component of eligibility. If the code entered into E-Tran does not accurately reflect the business's primary activity as described in the loan narrative, it raises questions about eligibility. The lender must ensure accuracy to avoid a potential guaranty repair or denial.","example":"A lender enters NAICS code 541611 (Administrative Management and General Management Consulting Services) into E-Tran, but the loan narrative describes the business as a manufacturing company (e.g., NAICS 31XXXX). The SBA would flag this discrepancy, potentially requiring a re-submission with the correct code and a re-evaluation of size eligibility.","what_lenders_check":"Lenders must ensure the correct NAICS code is used, as it directly impacts size eligibility. Inaccurate coding can lead to an ineligible loan, processing delays, and complications during subsequent servicing or guaranty purchase requests.","required_facts":["NAICS code","Primary business activity","E-Tran entry","Loan narrative","Size standard eligibility"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 121 - Small Business Size Regulations","SBA Table of Size Standards"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 121 - Small Business Size Regulations","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-121"},{"title":"SBA Table of Size Standards","url":"https://www.sba.gov/document/support-table-size-standards"}],"related_questions":[{"question":"How does a lender correct a material error in E-Tran after the 7(a) loan has received an SBA authorization?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-correct-a-material-error-in-e-tran-after-the-7-a-loan-has-received-an-sb"},{"question":"What specific data fields on SBA Form 1919 are critical for consistency with E-Tran for a 7(a) application?","url":"https://dealroom.so/for-lenders/questions/what-specific-data-fields-on-sba-form-1919-are-critical-for-consistency-with-e-tran-for-a-"},{"question":"What documentation is required to amend a 7(a) loan authorization for a change in project costs?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-amend-a-7-a-loan-authorization-for-a-change-in-project-c"},{"question":"When must a lender obtain an E-Tran modification for changes to a 7(a) loan's terms?","url":"https://dealroom.so/for-lenders/questions/when-must-a-lender-obtain-an-e-tran-modification-for-changes-to-a-7-a-loan-s-terms"},{"question":"What is the primary purpose of the E-Tran system for a 7(a) lender, beyond loan application submission?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-e-tran-system-for-a-7-a-lender-beyond-loan-application-"},{"question":"How does a lender process a 7(a) loan authorization amendment in the E-Tran system?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-process-a-7-a-loan-authorization-amendment-in-the-e-tran-system"}],"related_terms":[{"term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"term":"E-Tran","url":"https://dealroom.so/glossary/e-tran"},{"term":"E-Tran Error","url":"https://dealroom.so/glossary/e-tran-error"},{"term":"E-Tran entry","url":"https://dealroom.so/glossary/e-tran-entry"},{"term":"E-Tran modification","url":"https://dealroom.so/glossary/e-tran-modification"},{"term":"E-Tran authorization","url":"https://dealroom.so/glossary/e-tran-authorization"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-the-naics-code-entered-into-e-tran-differs-from-the-primary-b","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}