Glossary · The loan itself
In short
The SBA's refusal to guarantee a loan because the borrower or business doesn't meet program requirements. This is a deal-killer for SBA-backed financing.
An eligibility denial means the business or you, as the buyer, fail to meet specific SBA criteria, such as business type, size, or character requirements. Your lender should conduct thorough pre-screening, but if an issue arises, you'll need to either address the disqualifying factor or find alternative financing.
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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