Can a med spa or other licensed practice get an SBA loan?
Short answer
Yes, if the ownership structure meets every state requirement where the business operates. The lender must document eligibility and the ownership structure under those rules in the loan file. Source: SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3.
Yes. SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3 says businesses offering services that require professional licenses are eligible. The SOP's own example is a med spa. The condition is that the ownership structure meets all applicable state requirements where the business is located.
Why ownership is the issue
The SOP ties eligibility to state rules on ownership, and those rules vary by state. It does not list them. Your lender must document, in the loan file, that the business and its ownership structure meet your state's requirements.
If a separate management company will run the business, check SBA's management agreement rule too. A manager with sole discretion over operations creates an ineligible passive business (Para. E.3).
Franchises
A business under a franchise agreement must meet all applicable franchise requirements, including SBA's Franchise Directory (Sec. A, Ch. 1, Para. G).
Licenses
On a 7(a) loan, the lender must obtain evidence of all licenses required to operate no later than 90 days after final disbursement. The loan may not be sold into the secondary market until all required licenses are obtained (Sec. B, Ch. 6, Para. D.6).
Size uses the standard for your primary NAICSThe federal code system that sorts businesses by industry. industry in 13 CFR § 121.201.
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.