Glossary · Reading the business
In short
The SBA's primary measure of a business's size, calculated by averaging the total income or sales of the business (and its affiliates) over a specific number of years.
This metric is crucial for determining if a business meets the SBA's size standards for a 7(a) loan. The SBA typically uses a 5-year average of gross revenue. You must ensure the target business, combined with any affiliated entities, falls below the NAICS code-specific size limit based on this average.
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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