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Glossary · The loan itself

Business size standard

In short

A limit set by the SBA that determines if a business qualifies as 'small,' typically based on average annual revenue or number of employees. Your target business must meet this standard to be eligible for an SBA 7(a) loan.

What it means in a deal

The SBA assigns a specific size standard to each industry using NAICS codes. Before you commit to a deal, verify that the target business's revenue or employee count falls within the SBA's limits for its primary industry. This is a fundamental eligibility requirement for the 7(a) loan program.

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.

Common questions about Business size standard

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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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