Glossary · Reading the business
In short
A standardized code used by federal agencies to classify business establishments by industry. This code determines if the business you're buying meets SBA size standards and eligibility rules.
Every business has a NAICS code, which the SBA uses to check eligibility for a 7(a) loan, specifically against size standards and ineligible business types. Your lender will verify the business's NAICS code early in the process. Ensure the primary business activity aligns with an eligible code.
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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