For SBA lenders
Short answer
If a business exceeds the SBA size standard in either revenue *or* employees (if applicable), it is generally considered ineligible, as both metrics are independently evaluated.
SBA size standards are often defined by either annual receipts (revenue) or the number of employees, depending on the industry NAICS code. A business must meet *both* applicable size tests if both are specified for its industry. Exceeding either threshold typically renders the business ineligible as a 'small business' for 7(a) purposes.
A software development firm (NAICS 541511) has an employee-based size standard of 1,000 employees and a revenue-based standard of $34 million. If the applicant company has 500 employees but $40 million in annual receipts, it would be ineligible because it exceeds the revenue threshold, even though it is below the employee threshold.
Insider move
Lenders must correctly identify the primary NAICS code and apply the corresponding size standard. It's critical to check both revenue and employee count against the applicable standard, as exceeding either metric can lead to an eligibility denial.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
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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