SBA loan basics
Short answer
The SBA uses specific size standards based on industry codes (NAICS) and factors like revenue or employee count, and it also considers affiliation with other businesses to ensure true small business status.
A business must meet its industry's specific size standard, which is published in the SBA Table of Size Standards. Furthermore, the SBA's 'affiliation' rules dictate that the revenue and employees of any related businesses must be counted towards the applicant's size, preventing larger entities from misrepresenting themselves as small.
A consulting firm with $20 million in revenue might seem too large, but if its NAICS code allows up to $25 million, it's small. If that firm is owned by a holding company that also owns other businesses, the combined revenue of all entities under the holding company must also not exceed the standard.
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.
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