{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-eligibility","api_url":"https://dealroom.so/api/public/glossary/loan-eligibility","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":"loan-eligibility","term":"Loan Eligibility","group":"The loan itself","definition":"These are the specific criteria a business, its owners, and the proposed loan purpose must meet to qualify for an SBA 7(a) loan. It's the first major hurdle for financing.","what_it_means":"Your lender will assess your business against a long list of SBA eligibility requirements, covering business type, size, use of proceeds, and character. Issues like 'ineligible businesses' or failing the 'credit elsewhere test' can disqualify you. Understand these rules upfront to avoid wasting time.","url":"https://dealroom.so/glossary/loan-eligibility","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":"credit-elsewhere-test","term":"Credit elsewhere test","url":"https://dealroom.so/glossary/credit-elsewhere-test"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"}],"related_questions":[{"question":"How does the SBA define 'small business' for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-define-small-business-for-loan-eligibility"},{"question":"How does the SBA define a 'small business' for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-define-a-small-business-for-loan-eligibility"},{"question":"How are SBA small business size standards determined for loan eligibility?","url":"https://dealroom.so/sba-loans/basics/how-are-sba-small-business-size-standards-determined-for-loan-eligibility"},{"question":"What specific criminal history issues are automatic disqualifiers for SBA loan eligibility?","url":"https://dealroom.so/sba-7a/questions/what-specific-criminal-history-issues-are-automatic-disqualifiers-for-sba-loan-eligibility"},{"question":"Can prior bankruptcies or foreclosures impact my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/can-prior-bankruptcies-or-foreclosures-impact-my-sba-7-a-loan-eligibility"},{"question":"What constitutes \"passive income\" disqualifying a business from 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-passive-income-disqualifying-a-business-from-7-a-loan-eligibility"}]},"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 — Loan Eligibility","url":"https://dealroom.so/glossary/loan-eligibility","source_type":"DealRoom Data"}}