The absolute first rule of getting an SBA loan is that you must be a "small business." Check your eligibility here.
Standards vary widely based on your specific NAICS code.
Average over the last 3 years, including affiliates.
Include part-time and full-time. Exclude 1099 contractors.
Your business is considered "small" by SBA standards.
Before you can even apply for an SBA loan, you must legally qualify as a small business. The SBA sets these size standards based on your specific North American Industry Classification System (NAICS) code.
Depending on your industry, the SBA will judge your size based on either your average annual receipts (revenue) over the past three to five years, or your number of employees. This tool checks your metrics against the general baseline averages for major industry sectors.
Generally, manufacturing, mining, and wholesale trade industries are measured by their number of employees (usually capped between 100 to 1,500 employees). Service, retail, construction, and agricultural businesses are measured by average annual revenue (capped anywhere from $1 million to over $40 million).
If you are too large based on your NAICS code, you have a backup plan. You can use the Alternative Size Standard. Under this rule, you qualify as a small business if your maximum tangible net worth is less than $20 million AND your average net income after Federal income taxes (excluding carry-over losses) for the two full fiscal years before your application is less than $6.5 million.
Yes. The SBA has strict "affiliation rules." If you own multiple businesses, or if a holding company/private equity firm owns your business, you must add up the revenue and employees of ALL affiliated entities to see if you cross the size threshold. You cannot isolate just one small subsidiary.