SBA loan basics
Short answer
The SBA determines if a business is 'small' by comparing its revenue or number of employees to size standards specific to its industry. These standards vary widely by industry code (NAICS code).
SBA size standards are set by the North American Industry Classification System (NAICS) code for a business's primary industry. For manufacturing and retail, size is often based on the number of employees, while for services, it's typically based on average annual receipts (revenue). The business must not exceed both its industry's size standard and a maximum tangible net worth/net income test if applicable.
A coffee shop (NAICS 722515) might be considered 'small' if its annual revenue is less than $10 million. A manufacturing plant might be 'small' if it has fewer than 500 employees, depending on its specific NAICS code.
Insider move
Lenders must correctly identify the business's primary NAICS code and verify that its revenue and/or employee count falls within the SBA's published size standards. They also check for affiliation rules, which combine related businesses for size purposes.
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
SOP 50 10 - Lender and Development Company Loan Programs
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.
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