{"ok":true,"canonical_url":"https://dealroom.so/glossary/private-club-that-restricts-membership","api_url":"https://dealroom.so/api/public/glossary/private-club-that-restricts-membership","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":"private-club-that-restricts-membership","term":"Private club that restricts membership","group":"The loan itself","definition":"Private clubs that restrict membership based on criteria other than capacity are ineligible for SBA 7(a) loans. The SBA requires broad access for businesses it funds.","what_it_means":"If the target business is a private club that has discriminatory membership policies (e.g., based on race, religion, gender), it will not qualify for an SBA loan. This is a critical eligibility check for any club or association you consider buying.","url":"https://dealroom.so/glossary/private-club-that-restricts-membership","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":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"},{"slug":"non-profit-organization","term":"Non-profit organization","url":"https://dealroom.so/glossary/non-profit-organization"}],"related_questions":[{"question":"Can a private investor provide a loan that counts as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-private-investor-provide-a-loan-that-counts-as-equity-injection-for-an-sba-7-a-loan"},{"question":"When does ownership by a private equity fund trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-ownership-by-a-private-equity-fund-trigger-affiliation-for-sba-size-standard-pur"},{"question":"Can a bridge loan from a private lender count towards the buyer's required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-bridge-loan-from-a-private-lender-count-towards-the-buyer-s-required-equity-injectio"},{"question":"Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-private-equity-firm-count-as-equity-injection-for-an-sba-7-a-loan"},{"question":"Under what conditions does ownership by a private equity fund trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-ownership-by-a-private-equity-fund-trigger-affiliation-for-sba-"},{"question":"Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-subordinated-loan-from-a-private-third-party-investor-count-as-equity-injection-for-"}]},"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 — Private club that restricts membership","url":"https://dealroom.so/glossary/private-club-that-restricts-membership","source_type":"DealRoom Data"}}