{"ok":true,"canonical_url":"https://dealroom.so/glossary/501-c-3","api_url":"https://dealroom.so/api/public/glossary/501-c-3","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"501-c-3","term":"501(c)(3)","group":"People and paperwork","definition":"This is a section of the IRS tax code designating certain non-profit organizations as tax-exempt. Businesses with this status are generally ineligible for SBA 7(a) loans.","what_it_means":"The SBA 7(a) loan program is designed for for-profit small businesses. If the target business is primarily a 501(c)(3) non-profit, it will not qualify for an SBA loan. Confirm the legal structure and tax status of any business you evaluate.","url":"https://dealroom.so/glossary/501-c-3","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"non-profit-organization","term":"Non-profit organization","url":"https://dealroom.so/glossary/non-profit-organization"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"organizational-documents","term":"Organizational documents","url":"https://dealroom.so/glossary/organizational-documents"},{"slug":"for-profit-subsidiary","term":"For-profit subsidiary","url":"https://dealroom.so/glossary/for-profit-subsidiary"}],"related_questions":[{"question":"Can funds from a retirement account, like a 401(k), be used for my equity injection if rolled into a new C-corp via a ROBS plan?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-retirement-account-like-a-401-k-be-used-for-my-equity-injection-if-rolled"},{"question":"If I buy a business with real estate, can the SBA loan finance a commercial renovation project costing $300,000?","url":"https://dealroom.so/sba-7a/questions/if-i-buy-a-business-with-real-estate-can-the-sba-loan-finance-a-commercial-renovation-proj"},{"question":"Can an SBA 7(a) loan finance a commercial renovation project costing $300,000 if I buy a business with real estate?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-finance-a-commercial-renovation-project-costing-300-000-if-i-buy-a-bus"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — 501(c)(3)","url":"https://dealroom.so/glossary/501-c-3","source_type":"DealRoom Data"}}