{"ok":true,"canonical_url":"https://dealroom.so/glossary/ineligible-business-list","api_url":"https://dealroom.so/api/public/glossary/ineligible-business-list","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-list","term":"Ineligible business list","group":"The loan itself","definition":"This is a list of business types that the SBA will not provide loans to, regardless of their financial strength. It's an absolute disqualifier for 7(a) financing.","what_it_means":"Before you get too deep, check if the target business's industry is on the SBA's ineligible business list. Examples include speculative businesses, pyramid schemes, or those engaged in illegal activities. If the business falls into an ineligible category, an SBA 7(a) loan is off the table, so verify this early.","url":"https://dealroom.so/glossary/ineligible-business-list","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":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"pyramid-scheme","term":"Pyramid Scheme","url":"https://dealroom.so/glossary/pyramid-scheme"},{"slug":"multi-level-marketing-company","term":"Multi-Level Marketing Company","url":"https://dealroom.so/glossary/multi-level-marketing-company"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to purchase another company's client list?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-another-company-s-client-list"},{"question":"What happens if a franchise I want to buy is not on the SBA's approved list?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-a-franchise-i-want-to-buy-is-not-on-the-sba-s-approved-list"},{"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"}]},"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 list","url":"https://dealroom.so/glossary/ineligible-business-list","source_type":"DealRoom Data"}}