{"ok":true,"canonical_url":"https://dealroom.so/glossary/7a-loan","api_url":"https://dealroom.so/api/public/glossary/7a-loan","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"7a-loan","term":"7(a) loan","group":"The loan itself","definition":"The SBA's main loan program. A bank lends you the money and the SBA guarantees most of it, which lets banks fund business purchases they otherwise wouldn't.","what_it_means":"When you buy a business with an SBA 7(a) loan, the bank writes the check but the government backstops most of the risk — which is why lenders will fund deals at 10% down that they'd never touch on a conventional basis. The program tops out at $5 million, covers businesses across almost every industry, and is the default financing tool for acquisitions under that ceiling. Your goal is to find a Preferred Lending Partner (PLP) who has done deals in your industry and deal-size range, because their approval turnaround is days, not months.","url":"https://dealroom.so/glossary/7a-loan","official_sources":[{"slug":"terms-conditions-eligibility","title":"7(a) Loan Program — Terms, Conditions, and Eligibility","official_url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility","official_label":"View on SBA.gov","authority_tier":5,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/terms-conditions-eligibility"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"plp-lender","term":"PLP lender","url":"https://dealroom.so/glossary/plp-lender"},{"slug":"sop-50-10","term":"SOP 50 10","url":"https://dealroom.so/glossary/sop-50-10"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"}],"related_questions":[{"question":"Are SBA 7(a) loans only for businesses unable to get traditional bank loans?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-businesses-unable-to-get-traditional-bank-loans"},{"question":"What exactly is an SBA 7(a) loan, and who offers these loans?","url":"https://dealroom.so/sba-loans/basics/what-exactly-is-an-sba-7-a-loan-and-who-offers-these-loans"},{"question":"How do SBA 7(a) loan interest rates compare to standard commercial loans?","url":"https://dealroom.so/sba-loans/basics/how-do-sba-7-a-loan-interest-rates-compare-to-standard-commercial-loans"},{"question":"What makes an SBA 7(a) loan 'government-backed' compared to other loans?","url":"https://dealroom.so/sba-loans/basics/what-makes-an-sba-7-a-loan-government-backed-compared-to-other-loans"},{"question":"Are franchises eligible for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/are-franchises-eligible-for-sba-7-a-loans"},{"question":"Are SBA 7(a) loan interest rates typically higher or lower than conventional bank loans?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loan-interest-rates-typically-higher-or-lower-than-conventional-bank-loans"}],"related_tool":{"label":"SBA 7(a) payment calculator","url":"https://dealroom.so/sba-7a/calculator"}},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — 7(a) loan","url":"https://dealroom.so/glossary/7a-loan","source_type":"DealRoom Data"}}