{"ok":true,"canonical_url":"https://dealroom.so/glossary/disqualification","api_url":"https://dealroom.so/api/public/glossary/disqualification","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":"disqualification","term":"Disqualification","group":"Doing the deal","definition":"This refers to reasons why you or the business might be ineligible for an SBA loan, or why a lender might reject your application. Common reasons include prior loan defaults or certain types of businesses.","what_it_means":"Before spending too much time, confirm with your lender that both you and the target business are eligible for an SBA loan. If you have a prior felony, a recent bankruptcy, or a history of defaulting on federal debt, you might be disqualified. Certain business types, like passive real estate activities, are also ineligible.","url":"https://dealroom.so/glossary/disqualification","official_sources":[{"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"},{"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":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"felony","term":"Felony","url":"https://dealroom.so/glossary/felony"},{"slug":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"},{"slug":"passive-real-estate-activity","term":"Passive real estate activity","url":"https://dealroom.so/glossary/passive-real-estate-activity"}],"related_questions":[]},"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 — Disqualification","url":"https://dealroom.so/glossary/disqualification","source_type":"DealRoom Data"}}