{"ok":true,"canonical_url":"https://dealroom.so/glossary/restricted-industry","api_url":"https://dealroom.so/api/public/glossary/restricted-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":"restricted-industry","term":"Restricted industry","group":"The loan itself","definition":"Certain business activities are deemed ineligible by the SBA, regardless of how profitable they are. If the business you're buying operates in a restricted industry, it cannot get an SBA loan.","what_it_means":"Examples include passive businesses, speculative ventures, gambling, pyramid schemes, and businesses primarily deriving revenue from adult content. Your lender will check the NAICS code and business activities against SBA rules. Do your due diligence early to ensure the target business isn't on the ineligible list.","url":"https://dealroom.so/glossary/restricted-industry","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":"naics-code","term":"NAICS code","url":"https://dealroom.so/glossary/naics-code"},{"slug":"pyramid-scheme","term":"Pyramid Scheme","url":"https://dealroom.so/glossary/pyramid-scheme"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"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":"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":"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"},{"question":"How does my business's industry affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-my-business-s-industry-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 — Restricted industry","url":"https://dealroom.so/glossary/restricted-industry","source_type":"DealRoom Data"}}