{"ok":true,"canonical_url":"https://dealroom.so/glossary/ineligible-industry","api_url":"https://dealroom.so/api/public/glossary/ineligible-industry","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-industry","term":"Ineligible industry","group":"The loan itself","definition":"Certain types of businesses are specifically excluded from receiving SBA loans due to their nature or ethical considerations. You cannot get a 7(a) loan for these.","what_it_means":"Before getting too deep into a deal, always check if the target business operates in an Ineligible industry according to SBA rules, such as gambling, pyramid schemes, or passive real estate. This is a hard stop for 7(a) financing, so confirm the NAICS code and business activities early.","url":"https://dealroom.so/glossary/ineligible-industry","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":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"slug":"speculative","term":"Speculative","url":"https://dealroom.so/glossary/speculative"},{"slug":"pyramid-scheme","term":"Pyramid Scheme","url":"https://dealroom.so/glossary/pyramid-scheme"},{"slug":"real-estate-rental","term":"Real estate rental","url":"https://dealroom.so/glossary/real-estate-rental"}],"related_questions":[{"question":"How is my prior management experience evaluated if it's in a different industry?","url":"https://dealroom.so/sba-7a/questions/how-is-my-prior-management-experience-evaluated-if-it-s-in-a-different-industry"},{"question":"Does my business's industry affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-my-business-s-industry-affect-its-eligibility-for-an-sba-7-a-loan"},{"question":"Is prior experience in my specific industry required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-prior-experience-in-my-specific-industry-required-for-an-sba-7-a-loan"},{"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":"Will acquiring a business in a restricted industry (e.g., gambling, passive investing) kill approval?","url":"https://dealroom.so/sba-7a/questions/will-acquiring-a-business-in-a-restricted-industry-e-g-gambling-passive-investing-kill-app"},{"question":"Does my business's industry type affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-my-business-s-industry-type-affect-its-eligibility-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 industry","url":"https://dealroom.so/glossary/ineligible-industry","source_type":"DealRoom Data"}}