For SBA lenders
Short answer
A business operating a shared workspace or co-working facility is generally eligible for a 7(a) loan, provided it offers substantial services beyond passive real estate rentals and meets all other criteria.
While passive real estate businesses are ineligible, a shared workspace or co-working facility is typically eligible if it provides significant services to its tenants, such as administrative support, internet, utilities, furnishings, meeting rooms, and community events, which generate its primary revenue. This distinguishes it from simply leasing out space. The business must be actively managed.
A business applies for a 7(a) loan to establish a co-working space. The lender confirms the business plan includes dedicated staff, high-speed internet, IT support, printing services, and regular networking events, which are included in membership fees. This active service model makes it eligible.
Insider move
Lenders must carefully review the revenue model to ensure it is service-oriented rather than primarily passive rental income. The percentage of revenue from services versus pure space rental is a key determinant. Documentation of service offerings and staffing is critical.
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.
More on eligibility determinations
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