{"ok":true,"canonical_url":"https://dealroom.so/glossary/home-based-business","api_url":"https://dealroom.so/api/public/glossary/home-based-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":"home-based-business","term":"Home-Based Business","group":"Reading the business","definition":"A business operated primarily from the owner's residence. While common, operating a home-based business can complicate valuations and SBA loan eligibility if not properly structured.","what_it_means":"For an SBA 7(a) loan, the business must operate from a commercial location, even if it's leased. If the target business is currently home-based, you'll need a clear plan for it to operate from a commercial address post-acquisition. This might involve leasing space or acquiring commercial real estate.","url":"https://dealroom.so/glossary/home-based-business","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":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What if the business I'm acquiring is primarily home-based without a commercial storefront?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-is-primarily-home-based-without-a-commercial-storefront"},{"question":"Can a business operating from a home-based office be eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-business-operating-from-a-home-based-office-be-eligible-for-an-sba-7-a-loan"},{"question":"If my business is home-based, does that affect its eligibility for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/if-my-business-is-home-based-does-that-affect-its-eligibility-for-an-sba-7-a-acquisition-l"},{"question":"How does the SBA determine if multiple businesses are affiliated for size standard purposes based on common ownership?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-multiple-businesses-are-affiliated-for-size-standard-purpose"},{"question":"What constitutes an ineligible business for an SBA 7(a) loan based on activity?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-an-ineligible-business-for-an-sba-7-a-loan-based-on-activity"},{"question":"What if a business exceeds the SBA size standard based on revenue but not employees?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-exceeds-the-sba-size-standard-based-on-revenue-but-not-employees"}]},"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 — Home-Based Business","url":"https://dealroom.so/glossary/home-based-business","source_type":"DealRoom Data"}}