Glossary · The loan itself
In short
Certain business activities are deemed ineligible by the SBA, regardless of how profitable they are. If the business you're buying operates in a restricted industry, it cannot get an SBA loan.
Examples include passive businesses, speculative ventures, gambling, pyramid schemes, and businesses primarily deriving revenue from adult content. Your lender will check the NAICS code and business activities against SBA rules. Do your due diligence early to ensure the target business isn't on the ineligible list.
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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