For SBA lenders
Short answer
If a business earns revenue from multiple NAICS codes, the lender determines its primary industry based on the activity that generates the largest portion of its gross revenue. The size standard for this primary NAICS code is then applied.
For size eligibility, a business is categorized by its primary industry. This is identified by the NAICS code that accounts for the greatest percentage of the business's average annual receipts or employees over the past three years. The lender must gather financial data to support this determination and use the corresponding size standard to assess eligibility.
A borrower runs a business that generates 60% of its revenue from software development (NAICS 541511, size standard $34M) and 40% from IT consulting (NAICS 541611, size standard $16.5M). The lender identifies software development as the primary industry and applies the $34M size standard. If the business's total revenue is $20M, it's eligible under this standard.
Insider move
Lenders must accurately identify the primary NAICS code and apply the correct size standard. Incorrect classification or failure to account for all revenue sources can lead to an incorrect size determination, jeopardizing loan eligibility and 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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