{"ok":true,"canonical_url":"https://dealroom.so/glossary/sba-eligible","api_url":"https://dealroom.so/api/public/glossary/sba-eligible","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-eligible","term":"SBA Eligible","group":"People and paperwork","definition":"Refers to a business, borrower, or loan use that meets the specific criteria set by the Small Business Administration for its loan programs. Buyer cares because if any part of the deal isn't SBA Eligible, you can't get an SBA loan.","what_it_means":"Before committing to a deal, confirm that the target business, your ownership structure, and the proposed Use of Proceeds are all SBA Eligible. Key areas include business type (no pyramid schemes), owner character (no felonies), and equity injection source (no round-tripped funds). Lenders will scrutinize this heavily during underwriting.","url":"https://dealroom.so/glossary/sba-eligible","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":"good-character","term":"Good character","url":"https://dealroom.so/glossary/good-character"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"Are franchises eligible for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/are-franchises-eligible-for-sba-7-a-loans"},{"question":"Who is generally eligible to apply for an SBA 7(a) business loan?","url":"https://dealroom.so/sba-loans/basics/who-is-generally-eligible-to-apply-for-an-sba-7-a-business-loan"},{"question":"What does \"SBA eligible\" mean for a business seeking a 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-does-sba-eligible-mean-for-a-business-seeking-a-7-a-loan"},{"question":"What types of businesses are generally eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-businesses-are-generally-eligible-for-an-sba-7-a-loan"},{"question":"What kind of businesses are generally eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-businesses-are-generally-eligible-for-an-sba-7-a-loan"},{"question":"Are proceeds from personal investment sales eligible for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-proceeds-from-personal-investment-sales-eligible-for-equity-injection"}]},"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 Eligible","url":"https://dealroom.so/glossary/sba-eligible","source_type":"DealRoom Data"}}