{"ok":true,"canonical_url":"https://dealroom.so/glossary/eligible-industry","api_url":"https://dealroom.so/api/public/glossary/eligible-industry","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-industry","term":"Eligible industry","group":"The loan itself","definition":"The SBA restricts 7(a) loans to businesses operating in specific industries and prohibits funding for certain types of ventures. This determines if the business you want to buy can even qualify for an SBA loan.","what_it_means":"Before you get too far into a deal, confirm the target business's NAICS code aligns with SBA eligibility rules. Industries like financial businesses, gambling, pyramid schemes, and businesses deriving more than one-third of gross revenue from passive activities are typically ineligible. Don't waste time on an ineligible business.","url":"https://dealroom.so/glossary/eligible-industry","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":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"slug":"speculative-venture","term":"Speculative venture","url":"https://dealroom.so/glossary/speculative-venture"},{"slug":"franchise-directory","term":"Franchise Directory","url":"https://dealroom.so/glossary/franchise-directory"}],"related_questions":[{"question":"How is my prior management experience evaluated if it's in a different industry?","url":"https://dealroom.so/sba-7a/questions/how-is-my-prior-management-experience-evaluated-if-it-s-in-a-different-industry"},{"question":"Does my business's industry affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-my-business-s-industry-affect-its-eligibility-for-an-sba-7-a-loan"},{"question":"Is prior experience in my specific industry required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-prior-experience-in-my-specific-industry-required-for-an-sba-7-a-loan"},{"question":"Will acquiring a business in a restricted industry (e.g., gambling, passive investing) kill approval?","url":"https://dealroom.so/sba-7a/questions/will-acquiring-a-business-in-a-restricted-industry-e-g-gambling-passive-investing-kill-app"},{"question":"Does my business's industry type affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-my-business-s-industry-type-affect-its-eligibility-for-an-sba-7-a-loan"},{"question":"How does my business's industry affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-my-business-s-industry-affect-its-eligibility-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 industry","url":"https://dealroom.so/glossary/eligible-industry","source_type":"DealRoom Data"}}