For SBA lenders
Short answer
The business must meet the SBA size standard at the time of application, considering its current status and any affiliates; projected post-acquisition size is generally not the determining factor for eligibility.
SBA size eligibility is typically determined as of the date the lender submits the application to the SBA. The business, including all affiliates, must meet the applicable size standard (either revenue/employee-based or the alternative tangible net worth/net income test) at that specific time. Future projections of reduced size are usually not sufficient to establish initial eligibility.
A borrower applies for a 7(a) loan to acquire a smaller company. Before the acquisition, the borrower's existing affiliated entities have combined revenue of $40 million, exceeding the $30 million NAICS code limit. Even if the combined revenue will drop below the limit after consolidating and optimizing, the business is ineligible at the time of application.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
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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