Glossary · Reading the business
North American Industry Classification System(NAICS)
In short
The North American Industry Classification System (NAICS) is a standard used by federal statistical agencies to classify business establishments into industry categories. It helps determine if a business meets SBA size standards and eligibility rules.
What it means in a deal
Every business has a primary NAICS code, which your lender will use to check if the business is eligible for an SBA loan and if it meets the SBA's size standards (based on revenue or number of employees). If the business's NAICS code falls under an ineligible industry or exceeds size limits, your loan cannot proceed. Verify this early.
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 North American Industry Classification System
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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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