Glossary · Reading the business
In short
This is the main business activity, identified by a NAICS code. It determines if the business meets SBA size standards and eligibility rules, which is critical for securing a 7(a) loan.
The SBA uses the NAICS code to classify the business and check against its size standards, which are based on revenue or employee count. If the business is too large for its primary industry, it's ineligible for a 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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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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