SBA loan basics
Short answer
It depends on the nature of the business; some commission or fee-based businesses are eligible, while others, like passive real estate or speculative ventures, are not.
Businesses primarily engaged in lending, passive activities, or where the income is primarily from commissions on transactions without significant active management (like real estate investment trusts) are generally ineligible. However, active brokerage services or consulting firms are usually eligible.
A real estate brokerage firm actively selling properties and earning commissions is typically eligible. A business that buys and holds properties for rental income (passive real estate) is usually not.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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.
More on eligibility & business types
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