Glossary · People and paperwork
Eligibility opinion
In short
This is a formal statement from the lender confirming that your business and the loan purpose meet all SBA program requirements. It's a critical step before loan approval.
What it means in a deal
Before approving your 7(a) loan, the lender's legal counsel or an internal expert will issue an eligibility opinion. This confirms compliance with SBA rules regarding business type, use of proceeds, size standards, and borrower character. Ensure you provide accurate information to avoid delays or rejection.
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 opinion
- 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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