SBA 7(a) Q&A
Short answer
If your existing business is affiliated, the SBA will combine the revenues/employees of both to determine if the resulting larger entity still qualifies as a 'small business' under the applicable size standards.
SBA's affiliation rules aggregate the size of commonly owned or controlled businesses. If your existing business is affiliated with the one you're acquiring, their combined operations will be evaluated against the SBA's size standards for the primary industry. If the combined entity exceeds these standards, the new acquisition would be ineligible for an SBA loan.
A buyer owns a consulting firm with $3 million in annual revenue. They want to acquire another consulting firm with $4 million in annual revenue using an SBA loan. If the SBA size standard for consulting is $7.5 million, the combined $7 million revenue would still qualify as 'small.' However, if the acquired business was a different industry with a lower size standard, or if the combined revenue exceeded $7.5M, it would be ineligible.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
SBA Table of Size Standards
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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