SBA loan basics
Short answer
The SBA defines a 'small business' by industry-specific size standards, which are based on either the average annual receipts (revenue) over the last three years or the average number of employees.
These size standards vary significantly by industry (NAICS code). For some industries, the limit might be $5 million in revenue, while for others, it could be up to $40 million or 500 employees. The business must fall below the standard for its primary industry.
A landscaping company (NAICS 561730) has $6 million in average annual receipts and 25 employees. If its industry's size standard is $8 million or 100 employees, it qualifies as small.
Insider move
Lenders must accurately determine the business's primary NAICS code and verify that its financial figures and employee count comply with the SBA's published size standards. Affiliation rules can complicate this assessment.
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
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day