{"ok":true,"canonical_url":"https://dealroom.so/glossary/ineligible-business-category","api_url":"https://dealroom.so/api/public/glossary/ineligible-business-category","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-business-category","term":"Ineligible Business Category","group":"The loan itself","definition":"Specific types of businesses that the SBA will not provide loans for, regardless of their financial health. These include businesses involved in gambling, passive investments, or those with a history of illegal activities.","what_it_means":"Before investing significant time, ensure the target business is not on the SBA's list of ineligible categories. Your lender will perform a NAICS code check and review the business's operations. If the business falls into an ineligible category, an SBA 7(a) loan is simply not an option.","url":"https://dealroom.so/glossary/ineligible-business-category","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":"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":"credit-elsewhere-test","term":"Credit elsewhere test","url":"https://dealroom.so/glossary/credit-elsewhere-test"},{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"}],"related_questions":[{"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":"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"},{"question":"What makes a business 'speculative' and thus ineligible for SBA 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-makes-a-business-speculative-and-thus-ineligible-for-sba-7-a-financing"},{"question":"What constitutes 'credit elsewhere' rendering a business ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-credit-elsewhere-rendering-a-business-ineligible-for-an-sba-7-a-loan"},{"question":"What types of business entities are generally ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-types-of-business-entities-are-generally-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 Business Category","url":"https://dealroom.so/glossary/ineligible-business-category","source_type":"DealRoom Data"}}