SBA 7(a) Q&A
Short answer
The SBA defines 'small' based on specific size standards, primarily revenue (NAICS code) or number of employees, which vary by industry.
To be eligible for an SBA loan, a business must meet the SBA's definition of 'small' for its primary industry, as defined by its North American Industry Classification System (NAICS) code. These standards are either based on average annual receipts (revenue) over a specific period or average number of employees. Affiliation rules can also combine related businesses for size determination.
A manufacturing business might qualify if it has fewer than 500 employees, while a retail business might need to have less than $10 million in average annual receipts, depending on its specific NAICS code.
Insider move
Lenders must accurately determine the business's primary NAICS code and apply the correct size standard. They also perform an affiliation analysis to ensure all related entities are properly included in the size determination.
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
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.
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