{"ok":true,"canonical_url":"https://dealroom.so/glossary/borrower-eligibility","api_url":"https://dealroom.so/api/public/glossary/borrower-eligibility","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":"borrower-eligibility","term":"Borrower eligibility","group":"The loan itself","definition":"The set of rules defining who can get an SBA 7(a) loan. If you don't meet these, you can't get the loan, so it's a critical first check.","what_it_means":"The SBA has specific criteria for who can be a borrower, covering things like business type, citizenship, and character. Your lender will verify this early in the process using Form 1919 and other checks. Make sure you understand these rules upfront to avoid wasting time.","url":"https://dealroom.so/glossary/borrower-eligibility","official_sources":[{"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"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"character-based-eligibility-criterion","term":"Character-based eligibility criterion","url":"https://dealroom.so/glossary/character-based-eligibility-criterion"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"How does SBA Form 1919 ensure borrower eligibility compliance for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-sba-form-1919-ensure-borrower-eligibility-compliance-for-a-7-a-loan"},{"question":"How does an incorrect NAICS code on SBA Form 1919 impact 7(a) loan eligibility for a borrower?","url":"https://dealroom.so/for-lenders/questions/how-does-an-incorrect-naics-code-on-sba-form-1919-impact-7-a-loan-eligibility-for-a-borrow"},{"question":"What specific requirements apply to a borrower's credit history when evaluating eligibility for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-requirements-apply-to-a-borrower-s-credit-history-when-evaluating-eligibilit"},{"question":"How does a borrower's prior federal debt delinquency or default (e.g., tax lien) impact their 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-a-borrower-s-prior-federal-debt-delinquency-or-default-e-g-tax-lien-impact-their-"},{"question":"How does the SBA evaluate a master franchise agreement for 7(a) loan eligibility if the borrower is a sub-franchisor?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-a-master-franchise-agreement-for-7-a-loan-eligibility-if-the-bor"},{"question":"What documentation is needed to verify a borrower's equity injection when it comes from an existing business owned by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-needed-to-verify-a-borrower-s-equity-injection-when-it-comes-from-an"}]},"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 — Borrower eligibility","url":"https://dealroom.so/glossary/borrower-eligibility","source_type":"DealRoom Data"}}