{"ok":true,"canonical_url":"https://dealroom.so/glossary/negative-eligibility-list","api_url":"https://dealroom.so/api/public/glossary/negative-eligibility-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":"negative-eligibility-list","term":"Negative eligibility list","group":"The loan itself","definition":"This is a list of business types that the SBA will not provide loans for, such as those involved in speculation, gambling, or lending. You care because if your target business is on this list, an SBA 7(a) loan is off the table.","what_it_means":"Lenders check your target business's primary activities against this list early in the process. Verify the business's NAICS code and operations don't fall into these categories to avoid wasting time on an ineligible deal.","url":"https://dealroom.so/glossary/negative-eligibility-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":"industry-code","term":"Industry code","url":"https://dealroom.so/glossary/industry-code"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"How does negative working capital at the time of acquisition impact SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-negative-working-capital-at-the-time-of-acquisition-impact-sba-7-a-loan-eligibili"},{"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 if the business I'm acquiring has *negative goodwill*?","url":"https://dealroom.so/sba-loans/basics/what-if-the-business-i-m-acquiring-has-negative-goodwill"},{"question":"What if the business I'm acquiring has significant negative working capital at closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-has-significant-negative-working-capital-at-closing"},{"question":"What are the specific eligibility requirements for a franchise agreement that lacks a formal review or listing on the SBA Franchise Directory?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-eligibility-requirements-for-a-franchise-agreement-that-lacks-a-form"}]},"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 — Negative eligibility list","url":"https://dealroom.so/glossary/negative-eligibility-list","source_type":"DealRoom Data"}}