Glossary · Reading the business
In short
These are thresholds set by the SBA, defining a "small business" based on the average number of employees. Buyers must ensure the target business, including any affiliates, meets these standards to be eligible for an SBA 7(a) loan.
The SBA uses NAICS codes to assign a size standard (either employee-based or revenue-based) to businesses. If the target business and its affiliates, as defined by SBA affiliation rules, exceed the employee-based limit for its primary NAICS code, it's ineligible for an SBA 7(a) loan. Verify this 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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