Can a nonprofit get an SBA loan?
Short answer
Not a 7(a) or 504 loan. Applicants must be organized for profit (13 CFR §§ 120.100(b), 120.110(a)). A for-profit subsidiary of a nonprofit can qualify if other rules are met, and most private nonprofits may apply for SBA disaster loans.
No, not for 7(a) and 504 loans. 13 CFR § 120.100(b) requires the applicant to be organized for profit, and § 120.110(a) lists non-profit businesses as ineligible. SOP 50 10 8.1, Sec. A, Ch. 1, Para. B says lenders may review articles, bylaws, partnership agreements and tax returns to confirm status.
For-profit subsidiaries
A for-profit subsidiary of a nonprofit may qualify if it meets every other requirement. Para. B.2 adds three conditions:
- The nonprofit's receipts or employees count when measuring the subsidiary's size. A concern owned and controlled by a Native Hawaiian Organization is measured independently.
- Proceeds must be used only for the for-profit business.
- If the nonprofit owns 20% or more and cannot or will not guarantee the loan, the business is not eligible.
Disaster loans
SBA disaster loans are a separate program. SBA says most private nonprofit organizations may apply for physical disaster loans and economic injury disaster loans. Source: sba.gov/disaster, read November 8, 2026.
Buildings
An ineligible business cannot get an SBA loan for any purpose, even to buy or build a property for its own use. See Sec. A, Ch. 1, Para. E.3.
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