Glossary · The loan itself
Negative eligibility list
In short
This is a list of business types that the SBA will not provide loans for, such as those involved in speculation, gambling, or lending. You care because if your target business is on this list, an SBA 7(a) loan is off the table.
What it means in a deal
Lenders check your target business's primary activities against this list early in the process. Verify the business's NAICS code and operations don't fall into these categories to avoid wasting time on an ineligible deal.
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 Negative eligibility list
- How does negative working capital at the time of acquisition impact SBA 7(a) loan eligibility?
- Can an SBA 7(a) loan be used to purchase another company's client list?
- What happens if a franchise I want to buy is not on the SBA's approved list?
- What if the business I'm acquiring has *negative goodwill*?
- What if the business I'm acquiring has significant negative working capital at closing?
- What are the specific eligibility requirements for a franchise agreement that lacks a formal review or listing on the SBA Franchise Directory?
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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