Glossary · Doing the deal
eligibility criterion
In short
These are the specific conditions or qualifications a business and its owners must meet to be approved for an SBA 7(a) loan. If you don't meet them, you won't get the loan.
What it means in a deal
Before you get too deep into a deal, confirm that both you and the target business meet all SBA eligibility criteria, covering aspects like business type, size standards, and owner character. An experienced lender will vet these early, but you should understand them yourself to avoid wasting time on ineligible targets.
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 eligibility criterion
- How does the SBA define a 'speculative' business for eligibility?
- How does the SBA define 'small business' for loan eligibility?
- How does the SBA define a "small business" for eligibility purposes?
- How does the SBA define a 'small business' for loan eligibility?
- How are SBA small business size standards determined for loan eligibility?
- What is the primary purpose of SBA Form 1919 for eligibility?
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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