Federal regulation (highest authority)
Published by Office of the Federal Register · Last checked by DealRoom: 2026-06-13
Title 13 of the Code of Federal Regulations, Part 120 is the federal regulation that governs SBA business-loan programs, including the 7(a) program. It sits above the SOP in the authority hierarchy — the SOP must conform to it. Part 120 defines eligible uses of proceeds, credit-elsewhere tests, size standards, lender obligations, change-of-ownership rules, and program structure at the statutory level.
When a rule claim traces back to a CFR citation, it carries federal regulatory weight. Lenders underwrite against Part 120 directly, and SBA reviews are measured against it. If a seller or buyer wants to understand why a deal structure is allowed or prohibited, Part 120 is the authority to check first — before the SOP and before any SBA summary page.
These DealRoom Q&A pages cite 13 CFR Part 120 directly.
DealRoom is not the SBA — the official source controls
This page summarizes 13 CFR Part 120 for informational purposes. DealRoom is not affiliated with the SBA or any federal agency. The official source at www.ecfr.gov is the authoritative version. SBA rules change; always verify against the current official source before relying on any rule for a live deal. This is not legal, tax, or financial advice.
Match me with the right lender
Tell us your deal size, industry, and state — we'll identify the SBA lenders most active in that space and flag anything that could affect approval.
Free · No documents · Usually same-day