Glossary · Reading the business
In short
This refers to the SBA's rules that determine if a business is "small" enough to qualify for an SBA loan, based on factors like revenue or employee count. Your target business must meet these standards.
The SBA has specific size standards based on NAICS codes, either by average annual gross revenue or number of employees. Affiliation rules can complicate this, as the SBA may count the revenue or employees of other businesses you own or are connected to. It's critical to verify the target business's size eligibility, including any potential affiliations, early in due diligence.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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