{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/are-businesses-that-rely-on-commissions-or-fees-eligible-for-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/are-businesses-that-rely-on-commissions-or-fees-eligible-for-an-sba-7-a-loan","question":"Are businesses that rely on commissions or fees eligible for an SBA 7(a) loan?","topic":"Eligibility & Business Types","audience":"new","bot_mode":"buyer","short_answer":"It depends on the nature of the business; some commission or fee-based businesses are eligible, while others, like passive real estate or speculative ventures, are not.","rule":"Businesses primarily engaged in lending, passive activities, or where the income is primarily from commissions on transactions without significant active management (like real estate investment trusts) are generally ineligible. However, active brokerage services or consulting firms are usually eligible.","example":"A real estate brokerage firm actively selling properties and earning commissions is typically eligible. A business that buys and holds properties for rental income (passive real estate) is usually not.","what_lenders_check":"Lenders scrutinize the business model to determine if it involves active operations versus passive or speculative income. They look for direct provision of goods or services as the primary income source.","required_facts":["Active business","Passive income","Speculative activities","Ineligible business types"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"Are SBA 7(a) loans only for specific kinds of small businesses?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-specific-kinds-of-small-businesses"},{"question":"Can a business that is not for profit receive an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-business-that-is-not-for-profit-receive-an-sba-7-a-loan"},{"question":"Can a business operating from a home-based office be eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-business-operating-from-a-home-based-office-be-eligible-for-an-sba-7-a-loan"}],"related_terms":[{"term":"Aggregate SBA 7(a) Loan Eligibility","url":"https://dealroom.so/glossary/aggregate-sba-7-a-loan-eligibility"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/are-businesses-that-rely-on-commissions-or-fees-eligible-for-an-sba-7-a-loan","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}