SBA loan basics
Short answer
The SBA uses specific "size standards" based on your industry, typically measured by your business's average annual revenue or number of employees. Your business must be below these thresholds.
The SBA establishes size standards for most industries, categorized by NAICS codes, to determine eligibility. These standards specify the maximum average annual receipts over three years or the maximum number of employees over the past 12 months a business can have. If your business, including any affiliates, exceeds these limits, it is not considered small.
A plumbing company (NAICS 238220) may need to have average annual receipts under $16.5 million to be considered small. If its revenue for the last three years averaged $17 million, it would not qualify.
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
SOP 50 10 - Lender and Development Company Loan Programs
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
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.
More on eligibility & size
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