SBA loan basics
Short answer
To qualify, your business must be for-profit, operate in the U.S., meet SBA size standards, have reasonable owner equity, and demonstrate a need for the loan along with an ability to repay.
The SBA defines a 'small business' based on industry-specific size standards (number of employees or average annual revenue). Businesses must also show good character and be current on all government obligations.
A restaurant with 40 employees and $3 million in annual revenue applies for a loan. If its industry's size standard is 50 employees or $7 million, it qualifies as small. It must also have sufficient cash flow.
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
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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