Glossary · People and paperwork
In short
Refers to a business, borrower, or loan use that meets the specific criteria set by the Small Business Administration for its loan programs. Buyer cares because if any part of the deal isn't SBA Eligible, you can't get an SBA loan.
Before committing to a deal, confirm that the target business, your ownership structure, and the proposed Use of Proceeds are all SBA Eligible. Key areas include business type (no pyramid schemes), owner character (no felonies), and equity injection source (no round-tripped funds). Lenders will scrutinize this heavily during underwriting.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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