Can salon suites, coworking or ghost kitchens get SBA loans?
Short answer
Not if they earn rent from independent businesses. SBA bars them unless revenue is membership dues, no one has an assigned space and the operator supplies a working setup. Source: SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3.
Usually not. SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3 bars shopping centers, office suites (also called salon suites), ghost kitchens and similar models. These earn income by renting space to independent businesses that serve the public.
The three-part exception
A space-sharing business qualifies only if all three are true:
- Revenue comes from membership dues, not rent.
- Customers have no assigned space they can return to each visit. That means no office with a lockable door, no particular kitchen setup and no personalized space.
- The business handles upkeep and supplies the equipment for a fully functioning office or kitchen. Customers may bring their own tools, such as kitchen knives.
No mixed models
A business is either fully eligible or fully ineligible. If part of the revenue is rent, or members can choose an assigned space, the business is not eligible.
Salons that serve customers directly
Barber shops, hair salons, nail salons and similar personal service businesses are eligible. That holds whether they have employees or contract with individuals to provide the services directly to the public.
The difference is who the customer is. A salon sells haircuts to the public. A salon suite rents rooms to stylists.
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