SBA loan basics
Short answer
Yes, the SBA defines 'small' based on industry-specific size standards, typically measured by annual revenue or number of employees, which vary by NAICS code.
To be eligible for an SBA 7(a) loan, a business must qualify as 'small' under the SBA's size standards. These standards are tied to the business's primary industry, identified by its NAICS code. For some industries, the limit is based on average annual receipts over three years, while for others, it's the average number of employees over 12 months. Affiliation rules also apply to combine related entities.
A construction company might be considered small if its average annual revenue is under $39.5 million. However, a scientific research and development firm might qualify as small with up to 1,000 employees. The specific threshold depends entirely on the industry.
Insider move
Lenders must determine the correct NAICS code for the business and accurately calculate average annual receipts or employee count, including any affiliates, to ensure the business meets the size standard. Incorrect size determination can jeopardize the SBA guaranty.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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.
Terms in this answer
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