{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-that-is-structured-as-a-co-op","api_url":"https://dealroom.so/api/public/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-that-is-structured-as-a-co-op","question":"Can an SBA 7(a) loan be used to purchase a business that is structured as a co-op?","topic":"Eligibility & business type","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, small agricultural cooperatives are generally eligible for SBA 7(a) loans, subject to specific eligibility requirements.","rule":"While some non-profit or passive businesses are ineligible, small agricultural cooperatives are explicitly mentioned as eligible. The cooperative must meet all other standard SBA eligibility criteria, including size standards and an operating purpose.","example":"A group of farmers forming a cooperative to purchase a shared processing facility for $750,000 could potentially apply for an SBA 7(a) loan to finance the acquisition, provided they meet all other eligibility criteria as an operating small business.","what_lenders_check":"Lenders verify the cooperative's structure, ensure it meets the definition of a 'small agricultural cooperative', and confirm it conducts an eligible business activity, not purely passive or speculative ventures.","required_facts":["Small agricultural cooperative","Business type","Eligibility criteria","Operating purpose","Size standards"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"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"}],"related_questions":[{"question":"Can I acquire a business that operates primarily online with no physical storefront?","url":"https://dealroom.so/sba-7a/questions/can-i-acquire-a-business-that-operates-primarily-online-with-no-physical-storefront"},{"question":"Are there specific types of businesses or industries that are ineligible for SBA 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-types-of-businesses-or-industries-that-are-ineligible-for-sba-7-a-loans"},{"question":"If my business is home-based, does that affect its eligibility for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/if-my-business-is-home-based-does-that-affect-its-eligibility-for-an-sba-7-a-acquisition-l"},{"question":"Is a business run entirely from my home eligible for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/is-a-business-run-entirely-from-my-home-eligible-for-an-sba-7-a-loan"},{"question":"Does my business's industry affect its eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-my-business-s-industry-affect-its-eligibility-for-an-sba-7-a-loan"},{"question":"Does my business have to have employees to qualify for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-my-business-have-to-have-employees-to-qualify-for-an-sba-7-a-loan"}],"related_terms":[{"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"},{"term":"Lease with an option to purchase","url":"https://dealroom.so/glossary/lease-with-an-option-to-purchase"}],"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-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-that-is-structured-as-a-co-op","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."]}