SBA loan basics
Short answer
Generally, no, non-profit organizations are not eligible for SBA 7(a) loans because the program is designed for for-profit small businesses.
The SBA 7(a) loan program is intended to support 'small business concerns' as defined by the SBA, which are typically for-profit entities. Non-profit organizations are generally excluded from eligibility. There can be limited exceptions for certain types of cooperatives, but for most standard non-profits, this program is not an option.
A local community charity wants to expand its soup kitchen facility. Since it is a registered 501(c)(3) non-profit, it would not be eligible for an SBA 7(a) loan.
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 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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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