Glossary · People and paperwork
In short
This is the section of federal regulations that defines "small business" for various government programs, including SBA loans. It sets the rules for how the SBA determines if a business is eligible based on size.
For a 7(a) loan, your target business must meet these size standards, usually based on average annual revenue or number of employees. You need to understand these rules, especially those regarding "affiliation," as they combine the size of related businesses. Verify the target business's eligibility early in due diligence.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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