SIZE:
The Small Business Act defines an eligible small business as one that is independently owned and
operated and not dominant in its field of operation. The Act also states that in determining what is
a small business, the definition shall vary from industry to industry to adequately reflect industry
differences. The SBA has therefore developed
size standards that define the maximum size of an
eligible small business.
If a potential borrower is close to these standards, size eligibility should be discussed with the
local SBA office. Also note that the standards for a particular business may change from time to
time and some exceptions do apply.
When affiliations exist with other companies (for example, through common ownership, directorships,
or by contractual arrangements), the primary business activity must be determined both for the
applicant business as well as for the entire affiliated group. In order to be eligible for financial
consideration, the applicant must meet the size standard for its primary business activity and the
affiliated group must meet the standard for its primary business activity.
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