{"ok":true,"canonical_url":"https://dealroom.so/glossary/sba-cap","api_url":"https://dealroom.so/api/public/glossary/sba-cap","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":"sba-cap","term":"SBA cap","group":"The loan itself","definition":"This refers to the maximum loan amount the SBA will guarantee, which is $5 million for most 7(a) loans. It sets a ceiling on how much you can borrow through the program.","what_it_means":"Understand the $5 million SBA cap on the principal loan amount. If your total project costs require more than $5 million in debt, an SBA 7(a) loan alone won't cover it. You'd need to consider alternative financing for the remainder, or a conventional loan. This cap impacts the size of businesses you can acquire solely with 7(a) financing.","url":"https://dealroom.so/glossary/sba-cap","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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"loan-structure","term":"Loan structure","url":"https://dealroom.so/glossary/loan-structure"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"}],"related_questions":[{"question":"How is the interest rate cap determined for a variable rate 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-is-the-interest-rate-cap-determined-for-a-variable-rate-7-a-loan"},{"question":"How does an SBA 7(a) loan typically handle seasonal businesses for repayment capacity?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-typically-handle-seasonal-businesses-for-repayment-capacity"},{"question":"Are there caps on the interest rates lenders can charge for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/are-there-caps-on-the-interest-rates-lenders-can-charge-for-sba-7-a-loans"},{"question":"How does the SBA ensure that lenders adhere to specific interest rate caps on 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-ensure-that-lenders-adhere-to-specific-interest-rate-caps-on-7-a-loans"},{"question":"For a seller note on full standby, is it permissible for the accrued interest to capitalize or compound during the SBA 7(a) loan term?","url":"https://dealroom.so/for-lenders/questions/for-a-seller-note-on-full-standby-is-it-permissible-for-the-accrued-interest-to-capitalize"},{"question":"Can an SBA 7(a) loan finance working capital?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-working-capital"}]},"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 — SBA cap","url":"https://dealroom.so/glossary/sba-cap","source_type":"DealRoom Data"}}