Glossary · People and paperwork
Program Rule
In short
Specific regulations and guidelines set by the SBA that govern the 7(a) loan program. Your deal must comply with these to get approved and funded.
What it means in a deal
The SBA sets strict program rules, primarily found in 13 CFR Part 120 and SOP 50 10, which lenders must follow for every 7(a) loan. These rules cover everything from borrower eligibility and use of proceeds to collateral requirements and personal guarantees. Your lender ensures compliance, but you should understand the basics, especially around eligibility and equity injection.
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 Program Rule
- How does the SBA define 'active ownership' for the 24-month rule?
- How does the 'franchise rule' affect affiliation calculations for SBA 7(a) eligibility?
- How does the 'not engaged in lending' rule apply to a loan applicant?
- What is the 24-month ownership rule for a $0-down SBA partner buyout?
- How does the SBA define 'total control' rule to determine affiliation for size standards?
- How does the SBA's "all available collateral" rule apply when business assets are limited?
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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