Glossary · The loan itself
Small business size standard
In short
Criteria set by the SBA to define what constitutes a "small business," typically based on revenue or number of employees. Your target business must meet this to qualify for an SBA loan.
What it means in a deal
The SBA determines eligibility based on whether the business meets its small business size standard for its primary industry, identified by its NAICS code. You must confirm the target business, including any affiliates, falls within these limits. This is a critical eligibility requirement for any 7(a) loan.
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 Small business size standard
- How does the SBA define "small business" for size standard purposes?
- 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 if a business exceeds the SBA size standard at application but projects to be small post-acquisition?
- How are SBA small business size standards determined for loan eligibility?
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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