For SBA lenders
Short answer
A lender determines a business's size standard eligibility by identifying its primary industry NAICS code and comparing its average annual receipts or number of employees to the limits specified in the SBA Table of Size Standards. Affiliation rules must also be applied.
SBA defines 'small' based on specific size standards, which vary by industry. Lenders must determine the business's primary industry (the one generating most revenue) and apply the corresponding NAICS code. Then, they compare the business's average annual receipts over the last five years or its average number of employees (depending on the standard) to the limit. All affiliates' financials are combined for this calculation.
A landscaping business applying for a 7(a) loan reports $8 million in average annual receipts. The lender identifies its primary NAICS code (e.g., 561730 - Landscaping Services) which has a size standard of $9 million in average annual receipts. Since the business is below this threshold and has no affiliates, it is deemed 'small'.
Insider move
Lenders must accurately identify the primary NAICS code and correctly apply affiliation rules. Errors in size determination can lead to an ineligible borrower, which is a non-curable defect and will result in a denial of the SBA guaranty.
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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