SBA loan basics
Short answer
A "small business" is defined by the SBA based on its industry, using either average annual receipts (revenue) or the number of employees, with specific maximum thresholds.
The SBA publishes a comprehensive Table of Size Standards, which are specific to different industries (NAICS codes). To qualify as small, a business's revenue or employee count must be below the set maximum for its primary industry. This allows for variation across sectors.
A manufacturing business might be considered small if it has fewer than 500 employees, while a retail business might be considered small if its average annual receipts are less than $7.5 million, regardless of employee count.
Insider move
Lenders determine the appropriate NAICS code and verify the business's average annual receipts or employee count to ensure it meets the SBA's size standards. This is a critical initial eligibility check.
13 CFR Part 121 - Small Business Size Regulations
SBA Table of Size Standards
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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
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