SBA loan basics
Short answer
The SBA defines a 'small business' based on specific size standards, which vary by industry. These standards are typically based on either the business's average annual receipts (revenue) or its average number of employees.
To be considered 'small,' a business must meet the size standard for its primary industry, as defined by its North American Industry Classification System (NAICS) code. These standards are published in the SBA Table of Size Standards and can range from 50 to 1,500 employees or from $1 million to over $40 million in average annual receipts.
A construction company might be considered small if it has fewer than $36.5 million in average annual receipts. A software development firm, however, might be considered small if it has fewer than 1,000 employees.
Insider move
Lenders are responsible for determining if a business meets the applicable size standard, often requiring detailed financial statements and employee records. They also check for 'affiliation' with other businesses, which can combine their size for eligibility 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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