Glossary · The loan itself
In short
The SBA restricts 7(a) loans to businesses operating in specific industries and prohibits funding for certain types of ventures. This determines if the business you want to buy can even qualify for an SBA loan.
Before you get too far into a deal, confirm the target business's NAICS code aligns with SBA eligibility rules. Industries like financial businesses, gambling, pyramid schemes, and businesses deriving more than one-third of gross revenue from passive activities are typically ineligible. Don't waste time on an ineligible business.
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.
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.
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