SBA 7(a) Q&A
Short answer
The SBA defines 'small business' primarily by revenue (receipts) or employee count, varying by industry as specified in the SBA Table of Size Standards.
To be eligible for an SBA loan, a business must meet the SBA's size standards for its primary industry. These standards are either based on the average annual receipts over the past five years or the average number of employees over the past 12 months.
For a restaurant, the SBA size standard might be $8,000,000 in average annual receipts. If your target acquisition has $7,000,000 in average annual receipts, it would likely qualify as a small business. A manufacturing firm might have a standard based on 500 employees.
Insider move
Lenders must verify the borrower's size eligibility, which involves analyzing financial statements and employee records, and ensuring proper calculation according to the relevant NAICS code and SBA Table of Size Standards.
SBA Table of Size Standards
13 CFR Part 121 - Small Business Size Regulations
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on eligibility & size
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