Glossary · People and paperwork
In short
This is a section of the IRS tax code designating certain non-profit organizations as tax-exempt. Businesses with this status are generally ineligible for SBA 7(a) loans.
The SBA 7(a) loan program is designed for for-profit small businesses. If the target business is primarily a 501(c)(3) non-profit, it will not qualify for an SBA loan. Confirm the legal structure and tax status of any business you evaluate.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day