Glossary · The loan itself
In short
The SBA's main loan program. A bank lends you the money and the SBA guarantees most of it, which lets banks fund business purchases they otherwise wouldn't.
When you buy a business with an SBA 7(a) loan, the bank writes the check but the government backstops most of the risk — which is why lenders will fund deals at 10% down that they'd never touch on a conventional basis. The program tops out at $5 million, covers businesses across almost every industry, and is the default financing tool for acquisitions under that ceiling. Your goal is to find a Preferred Lending Partner (PLP) who has done deals in your industry and deal-size range, because their approval turnaround is days, not months.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-14 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day