Glossary · Your money in the deal
In short
Real estate held primarily for investment purposes rather than for active business operations. The SBA generally prohibits funding businesses that are primarily passive.
The SBA wants to fund operating businesses, not landlords. If the business you're buying generates more than 50% of its revenue from renting out real estate, it's likely considered passive and ineligible for a 7(a) loan. Be sure the business you're acquiring is actively operating.
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.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
Free · No documents · Usually same-day