How Does the SBA Define a Small Business?

The Reality

One of the most common misconceptions about SBA loans is that only really small businesses qualify. In reality, the SBA definition of a small business is broader than many expect.

SBA Size Standards

To qualify for a 504 loan, your business must have:

• Tangible net worth of $20 million or less
• Average net income (after federal taxes) of $6.5 million or less for the past two fiscal years

These thresholds allow many mid-sized businesses to qualify—making SBA loans a viable option for more companies than you might think.