Glossary · The loan itself
In short
This is a business that is actively engaged in commercial activity, producing goods or services, and generating revenue. The SBA generally only lends to these.
The SBA 7(a) loan program is primarily for operating businesses, not passive investments or businesses primarily generating income from real estate rentals. Your target acquisition must demonstrate it's actively engaged in its industry, employs staff, and has a track record of operations. This is a fundamental eligibility requirement.
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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