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NAICS code NAICS
Also called industry code, SIC code.
The federal industry classification attached to a business, used by funders for restricted-industry screening and by the SBA to apply size standards.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
The North American Industry Classification System assigns a numeric code to each line of business. It appears on tax returns, in bank onboarding records, on state registrations and in commercial credit files - often inconsistently, because each was self-reported at a different time.
Funders use it in two ways. Restricted-industry lists are usually maintained as sets of codes, so screening is automated: the code is matched, and a hit stops the file before a human reads it. The SBA uses NAICS differently, keying its small business size standards - revenue or employee thresholds that determine program eligibility - to specific codes.
The older SIC system is still used by some credit bureaus and funders in parallel, which adds a second opportunity for mismatch.
Where this one catches people
The code on your tax return, the one your bank recorded at account opening and the one in your credit file are frequently three different codes, and a funder may screen on whichever it happens to pull. A specialty retailer coded as a pawnbroker, or a consultancy coded as debt relief, gets declined by an automated rule for a business it does not describe. Check what you are coded as before wondering why files die on submission.
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NAICS code — common questions
What does naics code mean?
The federal industry classification attached to a business, used by funders for restricted-industry screening and by the SBA to apply size standards.
Where does naics code catch people out?
The code on your tax return, the one your bank recorded at account opening and the one in your credit file are frequently three different codes, and a funder may screen on whichever it happens to pull. A specialty retailer coded as a pawnbroker, or a consultancy coded as debt relief, gets declined by an automated rule for a business it does not describe. Check what you are coded as before wondering why files die on submission.
Is naics code the same as an interest rate?
NAICS code is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.
Which products does naics code apply to?
It is not specific to one product — it appears across the market.
Is there a worked example of naics code?
Not on this entry. Where a term is arithmetic, the arithmetic is shown; this one is not primarily a calculation.
What else should I read alongside naics code?
Pre-approval, Qualification criteria, Restricted industry, SBA 7(a) loan, SBA size standards.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
Is this legal advice?
No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.
Can I suggest a term?
Yes — [email protected]. The glossary grows from what people are actually shown in contracts.