Glossary · Reading the business
In short
For SBA purposes, "receipts" refers to the gross income (sales plus other income) of a business over a fiscal year. This figure is used to determine if a business meets the SBA's size standards for eligibility.
When applying for a 7(a) loan, your target business's average annual receipts must fall within SBA size standards for its industry. Lenders will calculate this average over the prior three fiscal years. Confirm these numbers early, as exceeding the cap means no SBA 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.
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.
Free · No documents · Usually same-day