{"ok":true,"canonical_url":"https://dealroom.so/glossary/ineligible-for-sba-guaranty","api_url":"https://dealroom.so/api/public/glossary/ineligible-for-sba-guaranty","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-for-sba-guaranty","term":"Ineligible for SBA Guaranty","group":"The loan itself","definition":"This means the SBA will not back the loan, making it a conventional loan or unfinanceable. If your deal is deemed ineligible, your financing falls apart.","what_it_means":"Common reasons for ineligibility include the business type (e.g., speculation, passive investments, pyramid schemes), the borrower's character, or improper use of loan proceeds. Your lender will assess eligibility; ensure all business details and your background are fully disclosed to avoid late-stage surprises.","url":"https://dealroom.so/glossary/ineligible-for-sba-guaranty","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":"sba-loan","term":"SBA Loan","url":"https://dealroom.so/glossary/sba-loan"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"borrower-misrepresentation","term":"Borrower Misrepresentation","url":"https://dealroom.so/glossary/borrower-misrepresentation"}],"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":"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"},{"question":"What kind of businesses are generally ineligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-businesses-are-generally-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 for SBA Guaranty","url":"https://dealroom.so/glossary/ineligible-for-sba-guaranty","source_type":"DealRoom Data"}}