Glossary · The loan itself
Borrower eligibility
In short
The set of rules defining who can get an SBA 7(a) loan. If you don't meet these, you can't get the loan, so it's a critical first check.
What it means in a deal
The SBA has specific criteria for who can be a borrower, covering things like business type, citizenship, and character. Your lender will verify this early in the process using Form 1919 and other checks. Make sure you understand these rules upfront to avoid wasting time.
Official sources
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.
Related terms
Common questions about Borrower eligibility
- How does SBA Form 1919 ensure borrower eligibility compliance for a 7(a) loan?
- How does an incorrect NAICS code on SBA Form 1919 impact 7(a) loan eligibility for a borrower?
- What specific requirements apply to a borrower's credit history when evaluating eligibility for a 7(a) loan?
- How does a borrower's prior federal debt delinquency or default (e.g., tax lien) impact their 7(a) loan eligibility?
- How does the SBA evaluate a master franchise agreement for 7(a) loan eligibility if the borrower is a sub-franchisor?
- What documentation is needed to verify a borrower's equity injection when it comes from an existing business owned by the borrower?
Defined by CapBench 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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