SBA loan basics
Short answer
Yes, your business must meet specific size standards defined by the SBA to be considered 'small' and qualify for a 7(a) loan.
The SBA defines 'small business' based on either the average number of employees over the past 12 months or average annual receipts (revenue) over the past three to five years. These standards vary significantly by industry, as outlined in the SBA Table of Size Standards, to ensure that assistance goes to businesses truly needing support.
A general construction company might be considered small if it has fewer than 1,000 employees. However, a software publisher might only qualify if it has fewer than 150 employees. A restaurant, meanwhile, might be defined by annual receipts, not employees.
Insider move
Lenders must verify the applicant's compliance with SBA size standards, often using the North American Industry Classification System (NAICS) code for the primary business activity. They also check for affiliation rules, which might combine the size of related businesses.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day