Glossary · People and paperwork
13 CFR Part 121(Code of Federal Regulations Part 121)
In short
This is the section of federal regulations that defines "small business" for various government programs, including SBA loans. It sets the rules for how the SBA determines if a business is eligible based on size.
What it means in a deal
For a 7(a) loan, your target business must meet these size standards, usually based on average annual revenue or number of employees. You need to understand these rules, especially those regarding "affiliation," as they combine the size of related businesses. Verify the target business's eligibility early in due diligence.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about 13 CFR Part 121
- How does the SBA define an "associate" for affiliation purposes under 13 CFR 121?
- How does SBA define an 'associate' for affiliation purposes under 13 CFR 121, impacting size determination?
- How does the SBA define an 'associate' for affiliation purposes under 13 CFR 121, beyond direct ownership?
- What does the "7(a)" part of an SBA loan name mean?
- What is the "SBA" part of an SBA 7(a) loan, exactly?
- What does the 'SBA' part of an SBA 7(a) loan mean?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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