Glossary · People and paperwork
In short
A business owned and operated by its members for their mutual benefit, rather than for profit alone. Buyers care because while some co-operatives are eligible for SBA loans, their unique ownership and operational structure can impact financing and management.
The SBA can guarantee loans to certain types of co-operatives, like worker co-ops or veteran-owned co-ops, provided they meet all other eligibility criteria. However, some types, like consumer co-ops, may be ineligible. Discuss the specific structure of the co-op with your lender early on.
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