Glossary · Doing the deal
Disqualification
In short
This refers to reasons why you or the business might be ineligible for an SBA loan, or why a lender might reject your application. Common reasons include prior loan defaults or certain types of businesses.
What it means in a deal
Before spending too much time, confirm with your lender that both you and the target business are eligible for an SBA loan. If you have a prior felony, a recent bankruptcy, or a history of defaulting on federal debt, you might be disqualified. Certain business types, like passive real estate activities, are also ineligible.
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
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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