SBA Loan Eligibility Requirements

Complete guide to SBA loan eligibility requirements. Learn if your business qualifies for SBA financing and how to meet the criteria for approval.

Check Your Eligibility Now

Use our eligibility calculator to see if your business qualifies for SBA loans

Check Eligibility

Size Standards

Your business must meet SBA size standards

•Generally fewer than 500 employees for most industries
•Manufacturing: typically 500-1,500 employees depending on product
•Retail/Service: usually based on average annual receipts
•Construction: typically $41.5 million in average annual receipts
•Agriculture: varies by specific activity

Size standards vary significantly by industry NAICS code

Financial Requirements

Meet credit and financial criteria

•Personal credit score typically 650+ (higher is better)
•Demonstrate ability to repay the loan
•Owner equity injection typically required
•Debt service coverage ratio of 1.15x or higher
•Collateral for loans over $25,000

Financial requirements may vary by lender and loan program

Business Location

Operate primarily in the United States

•Business must be located in the United States
•Primary operations must be in the U.S.
•Can have international operations if U.S. is primary
•Must benefit the U.S. economy
•Puerto Rico and territories qualify

Businesses with foreign ownership may have additional requirements

Character & Legal

Meet character and legal requirements

•Business must be for-profit (some nonprofits qualify)
•Good character of ownership and management
•No criminal background issues
•Not delinquent on government obligations
•Meet applicable licensing requirements

Background checks required for owners with 20%+ ownership

Common SBA Size Standards by Industry

Industry	Size Standard
Retail Trade	$8.5M average annual receipts
Restaurants	$8.5M average annual receipts
Construction	$41.5M average annual receipts
Manufacturing	500-1,500 employees
Professional Services	$25.5M average annual receipts
Healthcare	$25.5M average annual receipts
Transportation	1,500 employees
Wholesale Trade	100 employees

Note: Size standards are determined by your primary NAICS code. Use the SBA's official size standards tool for your specific industry classification.

Businesses That Don't Qualify for SBA Loans

×Lending institutions (banks, finance companies)

×Investment companies and advisors

×Businesses primarily engaged in political activities

×Gambling enterprises

×Life insurance companies

×Businesses located in foreign countries

×Pyramid sales plans

×Businesses primarily engaged in teaching, instructing, counseling or indoctrinating religion

×Businesses that present live performances of a prurient sexual nature

Important: This is not a complete list. The SBA has detailed eligibility requirements that may exclude other business types. Always verify eligibility with an SBA lender.

Credit Score Requirements

Below 650

Challenging

May need additional collateral or guarantors. Consider credit improvement first.

650-719

Acceptable

Generally qualifies but may have higher rates or additional requirements.

720+

Excellent

Best rates and terms available. Strongest approval chances.

How to Improve Your SBA Loan Eligibility

Credit & Financial

• Pay down existing debt to improve debt-to-income ratio
• Improve personal and business credit scores
• Build business credit history separately
• Maintain consistent cash flow and revenue
• Keep detailed financial records

Business Operations

• Establish time in business (2+ years preferred)
• Ensure proper business licenses and permits
• Maintain compliant business structure
• Document industry experience and expertise
• Build strong business relationships

Ready to Check Your Eligibility?

Use our free eligibility calculator and connect with SBA lenders who can help you navigate the qualification process.

Check Eligibility Connect with Lenders

Important Government Disclaimer

SBA Calculators is NOT affiliated with, endorsed by, or connected to the U.S. Small Business Administration (SBA), any federal agency, or any government entity.

This website is privately operated and provides educational financial calculators for planning purposes only. All calculations are estimates and actual loan terms may vary significantly.

Use of our calculators creates no obligation. We may connect you with qualified private lenders, but we do not guarantee loan approval, specific terms, or rates.

This website does not constitute financial, legal, or professional advice. Always consult qualified professionals regarding your specific situation.