Glossary · The loan itself
SBA size determination
In short
This is the process where the SBA decides if your business, including any affiliates, meets the size standards to qualify for an SBA loan. It's crucial for eligibility.
What it means in a deal
For an SBA 7(a) loan, your business must qualify as "small" based on specific industry codes (NAICS) and either revenue or employee count. The SBA size determination considers all affiliates. Work with your lender to ensure your acquisition structure and combined entities meet these size standards to avoid eligibility issues.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about SBA size determination
- What constitutes 'common management' triggering affiliation for SBA 7(a) size determination?
- When does identity of interest trigger affiliation for size determination under SBA rules?
- How does ownership of options or warrants affect affiliation determination for SBA size standards?
- When does a prior contractual relationship create affiliation for 7(a) size determination?
- When does common management or shared facilities trigger affiliation for SBA 7(a) size determination?
- How does SBA define an 'associate' for affiliation purposes under 13 CFR 121, impacting size determination?
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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