Glossary · People and paperwork
In short
An individual or entity that does not meet the SBA's or lender's criteria for receiving a 7(a) loan, often due to character, financial history, or past federal defaults.
If you or any key principal in your acquiring entity is an ineligible borrower, your 7(a) loan will be denied. Reasons include felony convictions, debarment from federal programs, or a history of default on government debt. Lenders conduct thorough background checks.
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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