{"ok":true,"canonical_url":"https://dealroom.so/glossary/operating-business","api_url":"https://dealroom.so/api/public/glossary/operating-business","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":"operating-business","term":"Operating Business","group":"The loan itself","definition":"This is a business that is actively engaged in commercial activity, producing goods or services, and generating revenue. The SBA generally only lends to these.","what_it_means":"The SBA 7(a) loan program is primarily for operating businesses, not passive investments or businesses primarily generating income from real estate rentals. Your target acquisition must demonstrate it's actively engaged in its industry, employs staff, and has a track record of operations. This is a fundamental eligibility requirement.","url":"https://dealroom.so/glossary/operating-business","official_sources":[{"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"},{"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"}],"related":[{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"start-up","term":"Start-up","url":"https://dealroom.so/glossary/start-up"},{"slug":"business-plan","term":"Business plan","url":"https://dealroom.so/glossary/business-plan"}],"related_questions":[{"question":"How does the SBA determine affiliation for businesses operating under a license agreement?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-affiliation-for-businesses-operating-under-a-license-agreement"},{"question":"Are there any minimum requirements for how long my business has been operating?","url":"https://dealroom.so/sba-loans/basics/are-there-any-minimum-requirements-for-how-long-my-business-has-been-operating"},{"question":"Does my business need to be operating for a certain time before applying?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-be-operating-for-a-certain-time-before-applying"},{"question":"What if the business I'm acquiring is a startup with limited operating history?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-is-a-startup-with-limited-operating-history"},{"question":"Does my business need to have been operating for a certain number of years?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-have-been-operating-for-a-certain-number-of-years"},{"question":"Can a new business with no operating history get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-new-business-with-no-operating-history-get-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 — Operating Business","url":"https://dealroom.so/glossary/operating-business","source_type":"DealRoom Data"}}