{"ok":true,"canonical_url":"https://dealroom.so/glossary/eligible-business","api_url":"https://dealroom.so/api/public/glossary/eligible-business","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":"eligible-business","term":"Eligible business","group":"The loan itself","definition":"A business that meets the SBA's specific criteria for receiving a 7(a) loan, including size standards, legal structure, and type of operations.","what_it_means":"The SBA has strict rules on what constitutes an eligible business. This includes criteria like being for-profit, operating in the US, meeting size standards (based on NAICS code, revenue, or employees), and not being in an ineligible industry (e.g., speculation, multi-level marketing). Your lender will verify eligibility as part of underwriting.","url":"https://dealroom.so/glossary/eligible-business","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":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What types of businesses are generally eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-businesses-are-generally-eligible-for-an-sba-7-a-loan"},{"question":"What kind of businesses are generally eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-businesses-are-generally-eligible-for-an-sba-7-a-loan"},{"question":"What types of businesses are generally NOT eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-businesses-are-generally-not-eligible-for-an-sba-7-a-loan"},{"question":"What kinds of businesses are generally not eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kinds-of-businesses-are-generally-not-eligible-for-an-sba-7-a-loan"},{"question":"What types of businesses are generally eligible to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-businesses-are-generally-eligible-to-apply-for-an-sba-7-a-loan"},{"question":"Are businesses that rely on commissions or fees eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/are-businesses-that-rely-on-commissions-or-fees-eligible-for-an-sba-7-a-loan"}]},"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 — Eligible business","url":"https://dealroom.so/glossary/eligible-business","source_type":"DealRoom Data"}}