When does SBA measure your size, and what if you grow afterward?
Short answer
Size is set on the date the application is accepted for SBA processing, or for delegated loans the date the lender approves the loan. Later growth does not count. If you buy a business, the combined size must fit (13 CFR § 121.302; SOP 50 10 8.1, Para. D.2).
SBA fixes your size on one date, and later growth does not count against you. SOP 50 10 8.1, Sec. A, Ch. 1, Para. D.2 and 13 CFR § 121.302 set that date.
The date depends on how the loan is processed
- Non-delegated loans: the date the application is accepted for SBA processing.
- Delegated loans (PLP, SBA Express, Export Express, PLP-EWCP and Premier Certified Lenders Program (PCLP) Certified Development Company (CDC)): the date the lender approves the loan.
Subsequent increases in size will not affect eligibility (Para. D.2.a; § 121.302(e)).
Buying a business
On a 7(a) or 504 loan for an acquisition or change of ownership, combined size must meet the standard (Para. D.2.b). That means the applicant plus the acquired business. A buyer with an existing company adds the target's receipts or employees to its own.
A first-time buyer has no receipts to add, so the target's size is the number that matters. Check it against 13 CFR § 121.201 before you sign a letter of intent.
Other core tests run through closing
The SOP says you must meet all core requirements at application and throughout closing and disbursement. For size, it sends you to Para. D, which sets the single measuring date above.
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
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