SBA loan basics
Short answer
The SBA defines a "small business" primarily by size standards based on industry, typically measured by average annual receipts or number of employees, which vary widely by industry code (NAICS).
To be eligible for an SBA 7(a) loan, a business must meet the SBA's definition of 'small' for its primary industry. These size standards are based on the North American Industry Classification System (NAICS) codes and are published in the SBA Table of Size Standards. For most industries, the standard is either a maximum number of employees or a maximum average annual revenue over a specified period (usually the last three years).
A manufacturing company in NAICS code 311300 (Sugar and Confectionery Product Manufacturing) might be considered small if it has 750 employees or fewer. A consulting firm in NAICS code 541611 (Administrative Management and General Management Consulting Services) might be small if its average annual receipts are $16.5 million or less. Both could qualify for an SBA loan, despite vastly different metrics.
Insider move
Lenders must accurately determine the business's primary NAICS code and verify that its size (employees or revenue) falls within the SBA's limits for that industry. Incorrect size determination can jeopardize the SBA guarantee.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
Last checked 2026-06-14. 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 who qualifies
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