Glossary · Reading the business
In short
An SBA lender's assessment of whether a borrower, along with any affiliated businesses, meets the SBA's small business size standards. This is crucial for determining if the business is eligible for an SBA loan.
The lender will add up the revenue or employee count of your target business and any other businesses you or the seller control or manage. If the combined entity exceeds the SBA's size standard for the primary industry, the business is ineligible for a 7(a) loan. Be proactive about identifying potential affiliations.
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.
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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