NAICS 425120 Quarterly Industry Report
Wholesale Trade Agents and Brokers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 425120Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 425120 draws on verified data from the U.S. Census Bureau[5], Bureau of Labor Statistics[7], and Small Business Administration[6] to profile the wholesale trade agents and brokers sector. Our research team analyzes commission structures, intermediary economics, and digital disruption trends to provide accurate market intelligence for business valuation purposes. The report covers SBA size standards, related NAICS classifications, and the evolving role of agents and brokers in wholesale trade. Fair Market Value updates this NAICS 425120 profile quarterly to reflect new Census releases and industry developments.
Industry Snapshot
Key metrics for the wholesale trade agents and brokers industry.
Industry Definition & Overview
Wholesale Trade Agents and Brokers (NAICS 425120) encompasses establishments primarily engaged in arranging the wholesale purchase or sale of goods on behalf of others without taking ownership title to the merchandise. Unlike merchant wholesalers who buy, stock, and resell products, agents and brokers earn commissions or fees for connecting buyers with sellers, arranging transactions, and negotiating terms. This classification includes independent sales representatives, manufacturers' agents, commission merchants, import and export agents, auction companies selling goods on commission, and food brokers who place products with grocery retailers.
The commission-based business model creates a fundamentally different cost structure than merchant wholesaling. Agents and brokers carry minimal inventory risk, require less warehouse infrastructure, and operate with lower working capital needs. Their value proposition centers on market knowledge, customer relationships, and the ability to represent multiple manufacturers efficiently to a defined set of buyers. Food brokerage represents one of the largest segments, with brokers connecting food manufacturers to grocery chain buyers through category management expertise and retail execution capabilities. According to the U.S. Census Bureau[5], roughly 36,284 establishments operate in this classification, employing about 235,399 workers.
The SBA[6] sets the size standard at 125 employees for this industry. Digital platforms and e-commerce have created new competitive pressures by enabling some manufacturers to reach buyers directly, reducing the need for intermediary agents in certain product categories. However, agents and brokers remain essential in fragmented markets where manufacturers lack the sales infrastructure to reach thousands of potential customers, and in international trade where import-export expertise and customs knowledge create barriers to direct transactions.
What's Included in This Industry
- Commission-based wholesale brokerage for durable goods
- Food brokerage connecting manufacturers with grocery retailers
- Import and export agent services for wholesale trade
- Manufacturers' agent and representative services
- Commission merchant activities in agricultural commodities
- Auction company services selling goods on commission basis
- Independent sales representative organizations
- Wholesale brokerage for nondurable consumer goods
- Industrial product agent and broker services
- Technology and equipment brokerage for wholesale markets
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Wholesale Trade Agents and Brokers | 425 |
| Industry Group | Wholesale Trade Agents and Brokers | 4251 |
| NAICS Industry | Wholesale Trade Agents and Brokers | 42512 |
| National Industry | Wholesale Trade Agents and Brokers | 425120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 424410 | General Line Grocery Merchant Wholesalers | Distributes general line groceries as a merchant wholesaler, representing the inventory-holding counterpart to food brokers who arrange sales on commission |
| 423990 | Other Miscellaneous Durable Goods Merchant Wholesalers | Handles other miscellaneous durable goods merchant wholesale, distinguished from this code by taking ownership title rather than arranging transactions on commission |
| 424990 | Other Miscellaneous Nondurable Goods Merchant Wholesalers | Distributes miscellaneous nondurable goods as a merchant wholesaler, distinguished from agents and brokers by purchasing and reselling inventory directly |
| 424510 | Grain and Field Bean Merchant Wholesalers | Handles grain and field bean merchant wholesale distribution, where commission merchants and grain brokers operate alongside merchant grain wholesalers |
| 424590 | Other Farm Product Raw Material Merchant Wholesalers | Distributes other farm product raw materials as merchant wholesalers, with commission agents operating in parallel for cotton, tobacco, and hide brokerage |
| 424910 | Farm Supplies Merchant Wholesalers | Handles farm supply merchant wholesale distribution, where manufacturers' representatives sell alongside direct wholesale operations in agricultural markets |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 12.6% | 4,520 |
| 2 | Florida | 9.0% | 3,237 |
| 3 | Texas | 8.7% | 3,109 |
| 4 | New York | 6.7% | 2,397 |
| 5 | Georgia | 4.6% | 1,652 |
| 6 | Illinois | 4.3% | 1,542 |
| 7 | Pennsylvania | 3.7% | 1,322 |
| 8 | Ohio | 3.4% | 1,214 |
| 9 | North Carolina | 3.2% | 1,161 |
| 10 | New Jersey | 2.9% | 1,051 |
% Of Establishments
0%
13%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
1,152
Total SBA Loans
$506.2M
Total Loan Volume
$439K
Average Loan Size
10 yrs
Average Loan Term
10.56%
Average Interest Rate
6,328
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[6] classifies NAICS 425120 under wholesale trade agents and brokers with a size standard of 125 employees. Businesses at or below this threshold qualify as small for federal contracting preferences and SBA loan programs. Wholesale agents and brokers can access SBA 7(a) loans[8] for working capital, office infrastructure, CRM technology investments, and business expansion needs. Firms purchasing office or showroom facilities may qualify for 504 loans[9]. Because agents and brokers operate on commission revenue without holding inventory, their capital needs differ substantially from merchant wholesalers in the same product categories.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 120 | $67.5M | $562K |
| 2 | Northeast Bank | 272 | $53.0M | $195K |
| 3 | Platinum Bank | 8 | $40.0M | $5.0M |
| 3 | FinWise Bank | 8 | $40.0M | $5.0M |
| 5 | Truliant FCU | 8 | $32.0M | $4.0M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 425120?
NAICS 425120 covers wholesale trade agents and brokers who arrange sales without taking title to goods. This includes food brokers, manufacturers' agents, independent sales representatives, import-export agents, commission merchants, and auction companies selling on commission. Source: U.S. Census Bureau[5]
What is the SBA size standard for NAICS 425120?
The SBA sets the size standard at 125 employees for wholesale trade agents and brokers. Businesses at or below this employee count qualify as small for federal contracting preferences and SBA financing programs. Source: SBA Size Standards[6]
How many wholesale agents and brokers operate in the U.S.?
Census data shows roughly 36,284 establishments operating under NAICS 425120, employing about 235,399 workers. The large establishment count reflects the low barriers to entry in commission-based sales representation across diverse product categories. Source: U.S. Census Bureau[5]
How do agents and brokers differ from merchant wholesalers?
Agents and brokers arrange transactions on commission without taking ownership of goods, while merchant wholesalers (NAICS 423-424) purchase inventory, hold title, and resell products. Agents carry less financial risk but earn lower margins per transaction compared to merchant wholesalers.
What NAICS codes are related to wholesale agents and brokers?
Related merchant wholesaler codes include 424410 (general groceries), 423990 (miscellaneous durables), 424990 (miscellaneous nondurables), 424510 (grain), and 424590 (other farm products). Service codes include 541613 (marketing consulting) and 488510 (freight arrangement). Source: Census NAICS[5]
Can wholesale agents and brokers get SBA loans?
Yes, small businesses under NAICS 425120 can access SBA 7(a) loans for working capital, technology investments, and business expansion. Firms purchasing showroom or office facilities may qualify for 504 loans. Capital needs tend to be lower than merchant wholesalers since agents do not hold inventory. Source: SBA Loan Programs[10]
What is a food broker?
Food brokers are agents who represent food manufacturers to grocery chain buyers, arranging product placement, managing category reviews, and executing retail promotions on a commission basis. They provide manufacturers access to retail accounts without requiring a direct sales force presence in every market.
How is e-commerce affecting wholesale agents and brokers?
Digital platforms enable some manufacturers to reach buyers directly, reducing demand for intermediaries in certain categories. However, agents remain valuable in fragmented markets requiring local relationships, international trade requiring customs expertise, and complex sales requiring technical product knowledge.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]SBA Loan Programs sba.gov
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