Can a private club or single-gender gym get an SBA loan?
Short answer
Not if it restricts patronage for any reason other than capacity. A men's-only or women's-only health club is not eligible (13 CFR § 120.110(i); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E). A gym that markets to one gender but admits both can qualify.
Not if membership is limited for reasons other than capacity. 13 CFR § 120.110(i) bars private clubs and businesses that limit memberships that way. SOP 50 10 8.1, Sec. A, Ch. 1, Para. E extends it to any restriction on patronage other than capacity.
The gym example
The SOP says a men's-only or women's-only health club is not eligible. A fitness center that markets to one gender can qualify if both men and women may join or use it. The lender must document:
- An affidavit signed by the applicant that the business is open to both men and women.
- Evidence the facility is open to both, such as appropriate bath and locker rooms or documented membership demographics.
Hiring practices
Businesses with discriminatory hiring practices are also ineligible, except as permitted under § 702(a) of the Civil Rights Act of 1964. The SOP's example is a restaurant that employs only servers of one gender.
Franchises
SBA's Franchise Team may refer a brand that appears to cater to one gender for a final agency decision on Directory listing. The Directory can also flag added issues for lenders, such as proof the business will be open to all (Para. G).
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