Glossary · Reading the business
Size standard
In short
A size standard defines the maximum size a business can be to qualify as "small" for SBA programs. As a buyer, your target business must meet this standard for an SBA 7(a) loan.
What it means in a deal
The SBA uses NAICS codes to assign a size standard, typically based on average annual revenue or number of employees. You need to ensure the business you're buying, combined with any affiliates, fits within these limits. Check the SBA's table to confirm eligibility early in your 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 Size standard
- How does common management trigger affiliation for size standard purposes?
- How does the SBA define "small business" for size standard purposes?
- How does common management trigger affiliation for SBA size standard purposes?
- When does a shared resource agreement create affiliation for SBA size standard calculations?
- How does the SBA define 'affiliation' when determining a business's size standard?
- When does a contractual relationship between two businesses trigger affiliation for size standard calculations?
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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