Glossary · Reading the business
In short
While most cooperatives are ineligible for SBA 7(a) loans, certain veteran-owned cooperatives can qualify. This is a specific exception to the general rule against financing co-ops.
If you're looking at a cooperative, especially one marketed as veteran-owned, you need to verify it meets strict SBA criteria for eligibility. This typically means it must be 51% or more owned by veterans and meet other specific cooperative requirements. Don't assume eligibility; confirm with your lender.
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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Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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