Glossary · The loan itself
Alternative size standard
In short
This is an alternate eligibility test for businesses that exceed the standard size limits (revenue or employees) but still need SBA loan access.
What it means in a deal
If a business is too large by the primary NAICS code size standard, it might still qualify if its tangible net worth is less than $15 million AND its average net income for the previous two fiscal years is less than $5 million. This is a common path for larger small businesses.
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 Alternative size standard
- What specific documentation is required for a business to qualify as 'small' under the alternative size standard?
- What are the financial criteria for a business to qualify as 'small' under the alternative size standard?
- What specific documentation is required for a business to be considered 'small' under the alternative size standard?
- What is the maximum tangible net worth for a business to be considered 'small' under the alternative size standard?
- How does common management trigger affiliation for size standard purposes?
- How does the SBA define "small business" for size standard purposes?
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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