Glossary · People and paperwork
In short
This term refers to any activity carried on for livelihood or profit. For SBA purposes, it must be an operating, for-profit entity, not passive investments.
The SBA requires the loan proceeds to be used for a legitimate "trade or business" operation. This excludes passive investments or speculative activities. Ensure the business you're buying is actively engaged in commercial operations to meet this eligibility criterion.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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