{"ok":true,"canonical_url":"https://dealroom.so/glossary/eligible-small-business-concern","api_url":"https://dealroom.so/api/public/glossary/eligible-small-business-concern","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-small-business-concern","term":"Eligible Small Business Concern","group":"People and paperwork","definition":"This is the SBA's definition of a business that qualifies for an SBA loan, based on size standards and certain activities. If the business you want to buy doesn't meet this, you can't get an SBA loan.","what_it_means":"The business must meet SBA's size standards (based on NAICS code, revenue, or number of employees) and operate in an eligible industry. You also need to ensure the business is not on the list of ineligible businesses. Confirming eligibility early is a critical step in your due diligence.","url":"https://dealroom.so/glossary/eligible-small-business-concern","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":"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":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"}],"related_questions":[{"question":"What if the acquired business's real estate has an environmental concern requiring remediation?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-s-real-estate-has-an-environmental-concern-requiring-remedia"},{"question":"How does the SBA define an eligible \"small business\" for a 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-an-eligible-small-business-for-a-7-a-acquisition-loan"},{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"},{"question":"Does the Small Business Administration (SBA) ever directly lend money to small businesses?","url":"https://dealroom.so/sba-loans/basics/does-the-small-business-administration-sba-ever-directly-lend-money-to-small-businesses"},{"question":"What is the Small Business Administration (SBA)?","url":"https://dealroom.so/sba-loans/basics/what-is-the-small-business-administration-sba"},{"question":"Who is the Small Business Administration (SBA)?","url":"https://dealroom.so/sba-loans/basics/who-is-the-small-business-administration-sba"}]},"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 Small Business Concern","url":"https://dealroom.so/glossary/eligible-small-business-concern","source_type":"DealRoom Data"}}