Glossary · The loan itself
In short
This refers to businesses primarily engaged in owning and renting out commercial or residential real estate. Most passive Real estate rental businesses are Ineligible for SBA 7(a) loans.
A business whose primary activity is passive Real estate rental is generally an Ineligible industry for the 7(a) program. However, if the business actively provides services (e.g., a hotel, B&B, or storage facility), it may be eligible, especially if the real estate is owner-occupied commercial real estate.
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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