For SBA lenders
Short answer
No, non-profit businesses are generally ineligible for SBA 7(a) loans, with limited exceptions for certain veteran-owned cooperatives.
SBA regulations generally restrict eligibility to for-profit businesses. While there are some niche programs or exceptions, a standard 7(a) loan is intended for small businesses that operate for profit. The SBA may consider certain eligible veteran-owned cooperatives.
A charitable foundation, recognized as a 501(c)(3) non-profit, applies for a 7(a) loan to purchase new equipment for its operations. The lender must decline the application due to the applicant's non-profit status.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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