{"ok":true,"canonical_url":"https://dealroom.so/glossary/ineligibility-at-origination","api_url":"https://dealroom.so/api/public/glossary/ineligibility-at-origination","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":"ineligibility-at-origination","term":"Ineligibility at Origination","group":"The loan itself","definition":"This means the business or borrower didn't meet SBA's rules when the loan was first approved. If discovered later, the SBA can deny its guaranty, leaving the lender and you on the hook.","what_it_means":"Lenders have strict SBA eligibility criteria they must follow during underwriting. As a buyer, ensure your business plan, ownership structure, and personal history comply. Any misrepresentation or omission can void the SBA guaranty.","url":"https://dealroom.so/glossary/ineligibility-at-origination","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":"eligibility-bar","term":"Eligibility Bar","url":"https://dealroom.so/glossary/eligibility-bar"},{"slug":"sba-loan-default","term":"SBA Loan Default","url":"https://dealroom.so/glossary/sba-loan-default"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"},{"slug":"sop-50-10","term":"SOP 50 10","url":"https://dealroom.so/glossary/sop-50-10"}],"related_questions":[{"question":"What constitutes a 'serious criminal offense' that may cause 7(a) loan ineligibility for a principal?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-serious-criminal-offense-that-may-cause-7-a-loan-ineligibility-for-a-pr"},{"question":"What specific actions by a lender during loan origination would typically lead to a guaranty denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-by-a-lender-during-loan-origination-would-typically-lead-to-a-guaran"},{"question":"What are common eligibility failures during origination that lead to an outright denial of the SBA guaranty?","url":"https://dealroom.so/for-lenders/questions/what-are-common-eligibility-failures-during-origination-that-lead-to-an-outright-denial-of"},{"question":"Can the lender charge their own separate processing or origination fees for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-the-lender-charge-their-own-separate-processing-or-origination-fees-for-an-sba-7-a-loa"},{"question":"How does the SBA determine if a lender has met the \"prudent lending standards\" requirement during loan origination?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-a-lender-has-met-the-prudent-lending-standards-requirement-d"},{"question":"Can I negotiate the lender's origination or packaging fee for my SBA 7(a) business acquisition loan?","url":"https://dealroom.so/sba-7a/questions/can-i-negotiate-the-lender-s-origination-or-packaging-fee-for-my-sba-7-a-business-acquisit"}]},"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 — Ineligibility at Origination","url":"https://dealroom.so/glossary/ineligibility-at-origination","source_type":"DealRoom Data"}}