SBA loan basics
Short answer
The SBA tests your business's 'small' size by checking its average annual revenue or number of employees against specific limits for your industry. These limits are found in the SBA Table of Size Standards.
To determine small business status, the SBA assigns a North American Industry Classification System (NAICS) code to the business's primary activity. It then applies the corresponding size standard, which can be based on either average annual receipts (revenue over the past three years) or the average number of employees over the past 12 months. Affiliation rules are also applied, meaning related businesses are combined for size calculation.
A consulting firm with annual receipts averaging $15 million might be too large if its NAICS code has a $12 million size standard. However, a manufacturing company with 400 employees might qualify if its NAICS code has a 500-employee limit.
Insider move
Lenders must accurately determine the primary NAICS code, calculate average receipts or employees, and identify any affiliated businesses. Incorrect size determination could lead to a denial of the SBA guaranty.
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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 who qualifies
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