{"ok":true,"canonical_url":"https://dealroom.so/glossary/eligibility-criterion","api_url":"https://dealroom.so/api/public/glossary/eligibility-criterion","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":"eligibility-criterion","term":"eligibility criterion","group":"Doing the deal","definition":"These are the specific conditions or qualifications a business and its owners must meet to be approved for an SBA 7(a) loan. If you don't meet them, you won't get the loan.","what_it_means":"Before you get too deep into a deal, confirm that both you and the target business meet all SBA eligibility criteria, covering aspects like business type, size standards, and owner character. An experienced lender will vet these early, but you should understand them yourself to avoid wasting time on ineligible targets.","url":"https://dealroom.so/glossary/eligibility-criterion","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":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"}],"related_questions":[{"question":"How does the SBA define a 'speculative' business for eligibility?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-define-a-speculative-business-for-eligibility"},{"question":"How does the SBA define 'small business' for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-define-small-business-for-loan-eligibility"},{"question":"How does the SBA define a \"small business\" for eligibility purposes?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-define-a-small-business-for-eligibility-purposes"},{"question":"How does the SBA define a 'small business' for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-define-a-small-business-for-loan-eligibility"},{"question":"How are SBA small business size standards determined for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/how-are-sba-small-business-size-standards-determined-for-loan-eligibility"},{"question":"What is the primary purpose of SBA Form 1919 for eligibility?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-sba-form-1919-for-eligibility"}]},"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 — eligibility criterion","url":"https://dealroom.so/glossary/eligibility-criterion","source_type":"DealRoom Data"}}