{"ok":true,"canonical_url":"https://dealroom.so/glossary/eligibility-determination","api_url":"https://dealroom.so/api/public/glossary/eligibility-determination","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-determination","term":"Eligibility determination","group":"Doing the deal","definition":"This is the SBA's assessment of whether a business and its owners meet the criteria for a 7(a) loan. It's a critical step; if you're not eligible, the loan won't happen.","what_it_means":"Your lender performs this check based on SBA rules regarding business type, size, ownership, and use of proceeds. Be transparent about all aspects of the business and your background; any issues found during this determination can delay or derail your loan approval.","url":"https://dealroom.so/glossary/eligibility-determination","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":"sop-50-10","term":"SOP 50 10","url":"https://dealroom.so/glossary/sop-50-10"},{"slug":"form-1919","term":"Form 1919","url":"https://dealroom.so/glossary/form-1919"},{"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"}],"related_questions":[{"question":"What is the specific lender process for submitting an unlisted franchise agreement for SBA review and eligibility determination?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-lender-process-for-submitting-an-unlisted-franchise-agreement-for-sba"},{"question":"What constitutes 'common management' triggering affiliation for SBA 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-common-management-triggering-affiliation-for-sba-7-a-size-determination"},{"question":"When does a prior contractual relationship create affiliation for 7(a) size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-a-prior-contractual-relationship-create-affiliation-for-7-a-size-determination"},{"question":"When does identity of interest trigger affiliation for size determination under SBA rules?","url":"https://dealroom.so/for-lenders/questions/when-does-identity-of-interest-trigger-affiliation-for-size-determination-under-sba-rules"},{"question":"How does ownership of options or warrants affect affiliation determination for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-ownership-of-options-or-warrants-affect-affiliation-determination-for-sba-size-st"},{"question":"How do shared administrative services, like HR or accounting, automatically trigger affiliation for size determination?","url":"https://dealroom.so/for-lenders/questions/how-do-shared-administrative-services-like-hr-or-accounting-automatically-trigger-affiliat"}]},"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 determination","url":"https://dealroom.so/glossary/eligibility-determination","source_type":"DealRoom Data"}}