{"ok":true,"canonical_url":"https://dealroom.so/glossary/501-c-3-non-profit","api_url":"https://dealroom.so/api/public/glossary/501-c-3-non-profit","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-non-profit","term":"501(c)(3) Non-Profit","group":"Reading the business","definition":"This tax status designates an organization as a non-profit, exempt from federal income tax. An SBA 7(a) loan cannot be used to purchase a business with this structure, as they are generally ineligible.","what_it_means":"The SBA 7(a) program is designed for for-profit small businesses. A 501(c)(3) non-profit cannot be acquired using an SBA 7(a) loan. If the business you're looking at has this status, you'll need to explore conventional financing options or consider a different acquisition target.","url":"https://dealroom.so/glossary/501-c-3-non-profit","official_sources":[{"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"},{"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"}],"related":[{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"non-profit-organization","term":"Non-profit organization","url":"https://dealroom.so/glossary/non-profit-organization"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"}],"related_questions":[{"question":"Can a non-profit organization with a for-profit subsidiary be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-organization-with-a-for-profit-subsidiary-be-eligible-for-a-7-a-loan"},{"question":"Can a non-profit organization receive an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-organization-receive-an-sba-7-a-loan"},{"question":"Can a non-profit organization qualify for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-non-profit-organization-qualify-for-an-sba-7-a-loan"},{"question":"Can a non-profit organization receive an SBA 7(a) loan for their activities?","url":"https://dealroom.so/sba-loans/basics/can-a-non-profit-organization-receive-an-sba-7-a-loan-for-their-activities"},{"question":"Can a non-profit organization provide a grant that counts towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-non-profit-organization-provide-a-grant-that-counts-towards-my-equity-injection"},{"question":"Can a non-profit organization apply for an SBA 7(a) loan for their operations?","url":"https://dealroom.so/sba-loans/basics/can-a-non-profit-organization-apply-for-an-sba-7-a-loan-for-their-operations"}]},"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) Non-Profit","url":"https://dealroom.so/glossary/501-c-3-non-profit","source_type":"DealRoom Data"}}