5223 - Activities Related to Credit Intermediation
Introduction
Understanding the various NAICS (North American Industry Classification System) codes is essential for businesses and government contractors navigating the finance sector. One crucial code is NAICS 5223 - Activities Related to Credit Intermediation. This category encompasses a wide range of financial services focused on facilitating credit transactions, making it a cornerstone of the finance and insurance industry. Whether you're in loan servicing, credit reporting, or mortgage brokerage, knowing the details of NAICS 5223 can help position your business for success.
What is NAICS Code 5223?
NAICS 5223 includes establishments primarily engaged in providing supportive services related to credit intermediation. Rather than directly providing funds or credit, businesses within this classification facilitate lending and credit activities by offering specialized services such as:
- Loan servicing
- Credit reporting
- Mortgage brokerage
Essentially, these activities support the smooth operation and management of credit products like loans and credit cards.
Sector: Finance and Insurance
NAICS 5223 is part of the broader Finance and Insurance sector, which covers a wide range of financial services industries. Companies in this classification function as intermediaries or facilitators between lenders and borrowers but do not usually assume the credit risk directly.
Typical Business Activities Under NAICS 5223
Organizations classified under NAICS 5223 typically engage in:
- Loan Servicing: Managing loan payments, recordkeeping, and customer service related to loans.
- Credit Reporting: Collecting and disseminating credit information to facilitate creditworthiness assessments.
- Mortgage Brokerage: Acting as intermediaries between borrowers and lenders, assisting with mortgage loan applications and approvals.
These services are integral to enabling consumer and commercial credit markets to function efficiently.
Size Standards for NAICS 5223 Eligibility
For small business certifications and government contracting purposes, the Small Business Administration (SBA) defines size standards based on average annual receipts or number of employees. For NAICS 5223:
| NAICS Code | Size Standard | Standard Unit of Measure |
|---|---|---|
| 5223 | $41.5 million | Average Annual Receipts (varies by sub-industry) |
Note: Specific size standards can vary by sub-sector within 5223; businesses should verify the exact standard with the SBA or relevant contracting authorities.
Examples of Businesses Under NAICS Code 5223
- Loan Servicing Companies: Firms that handle the administrative aspects of loan portfolios.
- Credit Reporting Agencies: Organizations that compile and provide credit data for consumers and businesses.
- Mortgage Brokers: Businesses that facilitate the connection between potential homebuyers and lenders.
NAICS Code 5223 Details Table
| Attribute | Description |
|---|---|
| NAICS Code | 5223 |
| Title | Activities Related to Credit Intermediation |
| Sector | Finance and Insurance |
| Description | Establishments engaged in facilitating credit intermediation through services such as loan servicing, credit reporting, and mortgage brokerage. |
| Typical Businesses | Loan servicing companies, credit reporting agencies, mortgage brokers |
| Size Standard | $41.5 million average annual receipts (varies by sub-industry) |
| Related NAICS Codes | 5221 (Depository Credit Intermediation), 5222 (Nondepository Credit Intermediation) |
| Primary Keywords for SEO | credit intermediation, loan servicing, credit reporting, mortgage brokerage, NAICS 5223 |
FAQ - Activities Related to Credit Intermediation (NAICS 5223)
What businesses are included in NAICS 5223?
Businesses primarily providing credit-related services such as loan servicing, credit reporting, and mortgage brokerage fall under NAICS 5223.
Is NAICS 5223 part of the finance sector?
Yes, NAICS 5223 is categorized within the Finance and Insurance sector.
How does NAICS 5223 differ from direct lending?
NAICS 5223 involves activities facilitating credit access rather than directly extending credit or loans, which fall under NAICS 5221 or 5222.
What are the SBA size standards for NAICS 5223?
The size standard is generally $41.5 million in average annual receipts, but this can vary depending on the specific sub-sector.
Can a credit card company be classified under NAICS 5223?
Typically, direct credit card issuers fall under credit intermediation codes like 5221. NAICS 5223 is more for supporting services like credit reporting related to credit cards.
By understanding NAICS code 5223 and its role within credit intermediation, businesses can better navigate government contracts, compliance requirements, and market positioning in the finance sector. Whether you are a loan servicer, credit reporting agency, or mortgage broker, knowing these details empowers you to expand your opportunities effectively.
