For SBA lenders
Short answer
The SBA determines if a business is 'small' based on its industry's specific size standard, typically measured by average annual receipts or number of employees, considering all affiliates.
Each industry (NAICS code) has a specific size standard set by the SBA, found in the SBA Table of Size Standards. For service and retail industries, this is often based on average annual receipts over the past three years. For manufacturing and some other industries, it's based on the number of employees. All affiliated businesses must be included when calculating these metrics to determine overall size eligibility.
A consulting firm applying for a 7(a) loan is in an industry with a size standard of $24 million in average annual receipts. If the firm and its affiliates have combined average annual receipts of $20 million, it is considered small. If it were $25 million, it would be ineligible.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
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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