Glossary · The loan itself
In short
A business primarily engaged in investing, lending, or speculating. The SBA generally considers these ineligible for 7(a) loans because they don't produce goods or services.
If the target business is mainly making investments rather than operating a trade, it's ineligible for an SBA 7(a) loan. Lenders will scrutinize the business's primary activity to ensure it qualifies.
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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