Ineligible Businesses

  • Businesses organized as a non-profit businesses are ineligible (for profit subsidiaries are eligible)
  • Businesses Engaged in Lending
  • Passive Businesses: 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 13 CFR § 120.111) are not eligible.
  • Life Insurance Companies
  • Businesses Located in a Foreign Country or Owned by Undocumented (Illegal) Aliens. However, businesses owned by non-U.S. citizens may be eligible.
  • Businesses Selling Through a Pyramid Plan
  • Businesses Engaged in Legal Gambling Activities: Circumstances exist in which businesses engaged in legal gambling activities may be eligible, including if the Applicant obtains one-third or less of their annual gross revenue, including rental income from: 1. Commissions from official State lottery ticket sales under a State license; or 2. Gambling activities licensed and supervised by state authority in those states where the activities are legal.
  • Businesses Engaged in any Illegal Activity
  • Businesses Which Restrict Patronage
  • Government-Owned Entities, Excluding Native American Tribes
  • Businesses Engaged in Promoting Religions
  • Businesses Engaged in Loan Packaging
  • Businesses with an Associate of Poor Character
  • Equity Interest by CDC or Associates in Applicant Concern
  • Businesses Providing Prurient Sexual Material
  • Prior Loss to the Government and Delinquent Federal Debt
  • Businesses Primarily Engaged in Political or Lobbying Activities
  • Speculation


There are circumstances where some types of businesses deemed ineligible by SBA may actually be eligible. Please feel free to contact us directly to more specifically discuss any potential eligibility issues.