SBA loan basics
Short answer
The SBA uses 'size standards' based on your industry's average annual receipts or number of employees to determine if your business is small enough. Affiliation rules are also considered.
The SBA establishes size standards for different industries, typically defined by average annual receipts over the past five years or average number of employees over the past 12 months. To qualify for a 7(a) loan, your business's size must not exceed the standard for its primary industry. Additionally, the SBA has strict affiliation rules, meaning the size of any affiliated businesses (those with common ownership or control) must be combined when determining eligibility.
A construction company applying for an SBA loan has 55 employees. The SBA's size standard for its industry is 500 employees, so it qualifies as a 'small business' based on employee count.
Insider move
Lenders must verify the applicant's primary industry and ensure its size, including any affiliates, falls within the SBA's published size standards. Miscalculating size or overlooking affiliates can result in the loan being ineligible for the guaranty.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
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