For SBA lenders
Short answer
An incorrect NAICS code can significantly impact eligibility if it misrepresents the business's primary activity, potentially leading to a denial of the loan or guaranty repair.
The NAICS code determines the applicable size standard and often indicates if the business is an ineligible type. Lenders must ensure the code accurately reflects the business's primary revenue-generating activity, as misclassification can result in a business being deemed ineligible under SBA size or activity rules.
A lender submits a loan application for a 'consulting firm' using NAICS 541611 (Management Consulting), which meets the size standard. If, upon further review, the firm is actually a 'real estate brokerage' (NAICS 531210), it may exceed the size standard or fall under different eligibility rules, potentially invalidating the loan.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
SBA Form 1919 - Borrower Information Form
SBA Table of Size Standards
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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