{"ok":true,"canonical_url":"https://dealroom.so/glossary/ineligible-borrower","api_url":"https://dealroom.so/api/public/glossary/ineligible-borrower","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":"ineligible-borrower","term":"Ineligible Borrower","group":"People and paperwork","definition":"An individual or entity that does not meet the SBA's or lender's criteria for receiving a 7(a) loan, often due to character, financial history, or past federal defaults.","what_it_means":"If you or any key principal in your acquiring entity is an ineligible borrower, your 7(a) loan will be denied. Reasons include felony convictions, debarment from federal programs, or a history of default on government debt. Lenders conduct thorough background checks.","url":"https://dealroom.so/glossary/ineligible-borrower","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-requirements","term":"Eligibility Requirements","url":"https://dealroom.so/glossary/eligibility-requirements"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"debarred-from-federal-programs","term":"Debarred from federal programs","url":"https://dealroom.so/glossary/debarred-from-federal-programs"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"}],"related_questions":[{"question":"When can a criminal record or felony conviction render a borrower ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-can-a-criminal-record-or-felony-conviction-render-a-borrower-ineligible-for-an-sba-7-"},{"question":"How does a lender determine if a borrower's business is engaged in a \"speculative\" activity and thus ineligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-if-a-borrower-s-business-is-engaged-in-a-speculative-activity-"},{"question":"What makes a business ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-makes-a-business-ineligible-for-an-sba-7-a-loan"},{"question":"Are certain business types explicitly ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/are-certain-business-types-explicitly-ineligible-for-an-sba-7-a-loan"},{"question":"Which types of businesses are typically ineligible for SBA 7(a) financing?","url":"https://dealroom.so/sba-loans/basics/which-types-of-businesses-are-typically-ineligible-for-sba-7-a-financing"},{"question":"What makes an existing business ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-makes-an-existing-business-ineligible-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 — Ineligible Borrower","url":"https://dealroom.so/glossary/ineligible-borrower","source_type":"DealRoom Data"}}