Glossary · The loan itself
In short
This refers to whether the target business meets the SBA's definition of a "small business" based on its industry, revenue, or employee count. It's a fundamental eligibility requirement for an SBA loan.
For a 7(a) loan, the business you're buying must fit the SBA's size standards, typically based on average annual revenue over the past three years or number of employees. If the target business is too large, it's ineligible for SBA financing. Verify the NAICS code and corresponding size standard 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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