SBA 7(a) Q&A
Short answer
Yes, small agricultural cooperatives are generally eligible for SBA 7(a) loans, subject to specific eligibility requirements.
While some non-profit or passive businesses are ineligible, small agricultural cooperatives are explicitly mentioned as eligible. The cooperative must meet all other standard SBA eligibility criteria, including size standards and an operating purpose.
A group of farmers forming a cooperative to purchase a shared processing facility for $750,000 could potentially apply for an SBA 7(a) loan to finance the acquisition, provided they meet all other eligibility criteria as an operating small business.
Insider move
Lenders verify the cooperative's structure, ensure it meets the definition of a 'small agricultural cooperative', and confirm it conducts an eligible business activity, not purely passive or speculative ventures.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
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