Glossary · The loan itself
In short
This refers to using SBA loan funds for ventures that are highly uncertain or primarily aim to profit from future price changes, like buying and selling commodities. Such uses are strictly prohibited.
The SBA will not finance businesses whose primary purpose is speculation, such as real estate flipping or trading in futures. Your business plan must demonstrate a clear operating model with revenue generated from goods or services, not just market fluctuations. Lenders will scrutinize the use of proceeds.
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.
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