Glossary · Doing the deal
Eligibility determination
In short
This is the SBA's assessment of whether a business and its owners meet the criteria for a 7(a) loan. It's a critical step; if you're not eligible, the loan won't happen.
What it means in a deal
Your lender performs this check based on SBA rules regarding business type, size, ownership, and use of proceeds. Be transparent about all aspects of the business and your background; any issues found during this determination can delay or derail your loan approval.
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 determination
- What is the specific lender process for submitting an unlisted franchise agreement for SBA review and eligibility determination?
- What constitutes 'common management' triggering affiliation for SBA 7(a) size determination?
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- How does ownership of options or warrants affect affiliation determination for SBA size standards?
- How do shared administrative services, like HR or accounting, automatically trigger affiliation for size determination?
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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