SBA loan basics
Short answer
The SBA defines a 'small business' based on specific size standards, which vary by industry, primarily using annual revenue or number of employees.
Each industry (identified by its NAICS code) has a specific size standard. For most manufacturing industries, it's based on employee count, while for many service and retail industries, it's based on average annual receipts over a specified period.
A retail clothing store might be considered small if its average annual receipts are under $22 million, while a construction company might be small if it has fewer than 1,500 employees.
Lenders must verify the business's NAICS code and calculate its size based on either revenue or employee count, including any affiliated businesses, to ensure it meets the SBA's standards.
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. 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.
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