Glossary · Doing the deal
In short
This refers to reasons why you or the business might be ineligible for an SBA loan, or why a lender might reject your application. Common reasons include prior loan defaults or certain types of businesses.
Before spending too much time, confirm with your lender that both you and the target business are eligible for an SBA loan. If you have a prior felony, a recent bankruptcy, or a history of defaulting on federal debt, you might be disqualified. Certain business types, like passive real estate activities, are also ineligible.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. 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 2026-06-15 · 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.
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