# 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.

Canonical page: https://www.sbaexpress.loans/answers/can-a-nonprofit-get-an-sba-loan/
Last checked: 2026-11-08

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.

## Sources

- [13 CFR § 120.100(b)](https://www.ecfr.gov/current/title-13/section-120.100)
- [13 CFR § 120.110(a)](https://www.ecfr.gov/current/title-13/section-120.110)
- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. B (p. 13)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3 (about p. 20)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [sba.gov/disaster (read November 8, 2026)](https://www.sba.gov/disaster/)