SBA loan basics
Short answer
The SBA determines if a business is 'small' by comparing its average annual receipts or number of employees to specific size standards for its primary industry.
The SBA maintains a 'Table of Size Standards' that categorizes businesses by their North American Industry Classification System (NAICS) code. Each NAICS code has a defined size standard, which is either based on average annual receipts (revenue) over the last three years or the average number of employees over the last 12 months. Your business, along with any affiliates, must not exceed these thresholds.
If a manufacturing business applies, the SBA might have a size standard of 500 employees for that industry. If the business has 450 employees, it would be considered small. For a retail business, the standard might be $8 million in annual receipts, so a business averaging $7 million would qualify.
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