{"ok":true,"canonical_url":"https://dealroom.so/glossary/eligibility-denial","api_url":"https://dealroom.so/api/public/glossary/eligibility-denial","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-denial","term":"Eligibility denial","group":"The loan itself","definition":"The SBA's refusal to guarantee a loan because the borrower or business doesn't meet program requirements. This is a deal-killer for SBA-backed financing.","what_it_means":"An eligibility denial means the business or you, as the buyer, fail to meet specific SBA criteria, such as business type, size, or character requirements. Your lender should conduct thorough pre-screening, but if an issue arises, you'll need to either address the disqualifying factor or find alternative financing.","url":"https://dealroom.so/glossary/eligibility-denial","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":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"slug":"sop-50-10","term":"SOP 50 10","url":"https://dealroom.so/glossary/sop-50-10"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What are common eligibility failures during origination that lead to an outright denial of the SBA guaranty?","url":"https://dealroom.so/for-lenders/questions/what-are-common-eligibility-failures-during-origination-that-lead-to-an-outright-denial-of"},{"question":"Can a lender cure an eligibility defect discovered post-closing to avoid a guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-cure-an-eligibility-defect-discovered-post-closing-to-avoid-a-guaranty-repair"},{"question":"Can incomplete or inconsistent financial projections lead to an SBA 7(a) loan denial?","url":"https://dealroom.so/sba-7a/questions/can-incomplete-or-inconsistent-financial-projections-lead-to-an-sba-7-a-loan-denial"},{"question":"How does a lender prevent a guaranty denial related to undisclosed affiliations identified post-closing?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-prevent-a-guaranty-denial-related-to-undisclosed-affiliations-identified"},{"question":"What specific actions by a lender during loan origination would typically lead to a guaranty denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-by-a-lender-during-loan-origination-would-typically-lead-to-a-guaran"},{"question":"What E-Tran submission errors most commonly lead to SBA 7(a) guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-e-tran-submission-errors-most-commonly-lead-to-sba-7-a-guaranty-repair-or-denial"}]},"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 denial","url":"https://dealroom.so/glossary/eligibility-denial","source_type":"DealRoom Data"}}