Glossary · Reading the business
In short
This is the SBA's measure of a business's size, typically an average of its gross revenue over the past five fiscal years. It determines if a business is considered "small" and eligible for an SBA loan.
Lenders use this to confirm the target business meets the SBA's size standards for its industry. You need to ensure the business's NAICS code aligns with the correct size standard. If the business is too large, it's ineligible for a 7(a) loan.
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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