What businesses are ineligible for SBA business loans?

CFR · 2024-01-01 · US · Title 13

The following types of businesses are ineligible: (a) Non-profit businesses (for-profit subsidiaries are eligible); (b) Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors (pawn shops, although engaged in lending, may qualify in some circumstances); (c) Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies under § 120.111); (d) Life insurance companies; (e) Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify); (f) Pyramid sale distribution plans; (g) Businesses deriving more than one-third of gross annual revenue from legal gambling activities; (h) Businesses engaged in any activity that is illegal under Federal, State, or local law; (i) Private clubs and businesses which limit the number of memberships for reasons other than capacity; (j) Government-owned entities (except for businesses owned or controlled by a Native American tribe); (k)-(l) [Reserved] (m) Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans; (n) Businesses with an Associate who is incarcerated, on probation, on parole, or is under indictment for a felony or any crime involving or relating to financial misconduct or a false statement; (o) Businesses in which the Lender or CDC, or any of its Associates owns an equity interest; (p) Businesses w

official document · source cfr-2024 · id 13:§ 120.110