Can a nursing home or assisted living facility get an SBA loan?
Short answer
Yes, if it is licensed as a nursing home, assisted living facility or state equivalent and provides healthcare or medical services. A residential facility without that license and those services is ineligible (SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3).
Yes, if it holds the right license and provides care. Licensed nursing homes, assisted living facilities and state-licensed equivalents are eligible when they provide healthcare or medical services. That is SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3.
What counts as healthcare or medical services
The SOP's examples include:
- Wellness checks.
- Monitoring or helping residents take medications.
- Monitoring blood sugar levels.
- Having medical staff on site, even part-time.
The list is not exhaustive. The lender must consider the terms of the license the business operates or will operate under.
What does not qualify
Residential facilities that are not licensed as nursing homes or assisted living facilities, and do not provide healthcare or medical services, are not eligible. The rule sits in the passive business section, alongside the landlord ban in 13 CFR § 120.110(c).
Other points
Size is measured under your primary NAICSThe federal code system that sorts businesses by industry. industry in 13 CFR § 121.201. The citizenship rule and the other core tests also apply.
If a third party will run the facility day to day, check the management agreement rule. A manager with sole discretion over operations makes the applicant an ineligible passive business (Para. E.3).
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