Glossary · The loan itself
In short
A business or trust that doesn't actively conduct trade or business, primarily holding assets like real estate or equipment. The SBA generally won't lend directly to these.
For an SBA 7(a) loan, the operating business must be the borrower. A passive entity might own the real estate, but it would lease it to the operating company, and both entities would be co-borrowers or co-applicants.
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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