Glossary · The loan itself
In short
An SBA loan that fails to meet specific SBA eligibility requirements. If deemed ineligible, the SBA can deny its guaranty, jeopardizing your deal.
The SBA has strict rules on who can borrow, what type of business can be financed, and how loan proceeds can be used. Lenders perform due diligence to ensure eligibility, but you as the buyer should also understand these rules (e.g., "ineligible businesses rule," "credit elsewhere test"). An ineligible loan means no SBA guaranty, which can derail your deal.
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.
Free · No documents · Usually same-day