Am I eligible for an SBA loan? Check your business type
Short answer
Most operating, for-profit U.S. businesses can apply. SBA bars the types in 13 CFR 120.110, including lenders, passive landlords, pyramid sales plans and most gambling businesses. Answer below to see where you appear to stand.
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Pick the closest business type, then answer what you can. The rule behind every result is cited.
Your result
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Next step
Tell us about the business and we send your request to a lending partner.
Start my loan requestJanover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.
What SBA requires of every applicant
An applicant must be an operating, for-profit business located in the United States. It must also be small under SBA size standards and able to show a need for the credit (13 CFR 120.100). The desired credit must not be available on reasonable terms from non-federal, non-state and non-local government sources (13 CFR 120.101). This check covers the list of ineligible types, the owner rules and the history rules. It does not cover credit.
Being on the list stops an application, for any purpose. The SOP says an ineligible business cannot obtain an SBA loan even to buy or build a building for its own use.
Every business type this check covers
| Business | Outcome | How the rule reads | Source |
|---|---|---|---|
| An operating for-profit business not listed below (a restaurant, trade, store, clinic or manufacturer) | Not barred | A for-profit business located in the United States that is not on the list in 13 CFR 120.110 is not barred by type. | 13 CFR § 120.100; 13 CFR § 120.110; SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Types of Ineligible Businesses |
| Barber shop, hair salon, nail salon or similar personal service | Not barred | Barber shops, hair salons, nail salons and similar personal services are eligible, whether they have employees or contract with individuals. | SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Service that needs a professional license (a med spa, for example) | On conditions | A business that needs professional licenses is eligible if its ownership structure meets state requirements. The lender must document this in the loan file. | SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Rents or leases equipment, household goods or other items | Not barred | Businesses that lease equipment, household goods or other items are eligible. If the business is really financing purchases, the lending rules apply instead. | SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses; SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Operates a cell tower, solar panels, a billboard or a wind turbine | Not barred | The business that operates the cell phone tower, solar panels, billboard or wind turbine is eligible. | SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Business | Outcome | How the rule reads | Source |
|---|---|---|---|
| Bank, credit union, finance company or factoring company | Barred | SBA cannot guarantee a loan to a business primarily engaged in lending, such as a bank, finance company or factoring company. | 13 CFR § 120.110(b); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Investment company, bail bond company or other business whose stock in trade is money | Barred | SBA cannot guarantee a loan to an investment company, a bail bond company or any other business whose stock in trade is money. | 13 CFR § 120.110(b); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Pawn shop | Depends | A pawn shop is eligible if more than 50% of prior-year revenue is from merchandise sales rather than interest on loans. | 13 CFR § 120.110(b); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Business that finances its own customers' purchases | Depends | A business that finances sales in the regular course of business is eligible if less than 50% of its revenue is from that financing. | 13 CFR § 120.110(b); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Mortgage company | Depends | Mortgage companies that mainly service loans are eligible. A servicer that disburses loans must sell them within 14 calendar days of closing to be eligible. Companies that make loans and hold them are not. | 13 CFR § 120.110(b); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Check cashing business | Depends | A check cashing business is eligible if it receives more than 50% of its revenue from the service of cashing checks. | 13 CFR § 120.110(b); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Fee-based financial advisor | On conditions | A business providing financial advice on a fee basis is eligible if it does not use loan proceeds to invest in its own portfolio. | 13 CFR § 120.110(b); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Life insurance company | Barred | Life insurance carriers are not eligible. | 13 CFR § 120.110(d); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Life Insurance Carriers |
| Independent insurance agency | Not barred | SBA's bar covers life insurance companies, not independent agents. | 13 CFR § 120.110(d); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Businesses Engaged in Lending |
| Loan packager or Lender Service Provider | Depends | Loan packagers and Lender Service Providers earning more than one third of gross annual revenue from packaging SBA loans are not eligible. | 13 CFR § 120.110(m); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Loan Packagers |
| Business | Outcome | How the rule reads | Source |
|---|---|---|---|
| Nonprofit organization | Barred | All applicants must be organized for profit. For-profit subsidiaries of nonprofits may be eligible. | 13 CFR § 120.100(b); 13 CFR § 120.110(a); SOP 50 10 8.1, Sec. A, Ch. 1, Para. B, Organized for Profit |
| For-profit subsidiary of a nonprofit | Depends | A for-profit subsidiary of a nonprofit may be eligible. If the nonprofit owns 20% or more and cannot or will not guarantee the loan, the subsidiary is not eligible. | 13 CFR § 120.110(a); SOP 50 10 8.1, Sec. A, Ch. 1, Para. B, Organized for Profit |
| Owned by a government or political subdivision | Barred | Businesses owned by municipalities and other political subdivisions are not eligible. | 13 CFR § 120.110(j); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Government-Owned Entities |
| A Native American tribe itself | Barred | A Native American tribe is a governmental entity and is not eligible. | 13 CFR § 120.110(j); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Government-Owned Entities |
| Business owned in whole or in part by a Native American tribe | On conditions | The business must be a separate legal entity. A federally recognized tribe must also waive sovereign immunity for the collateral and collection. It must accept federal courts in a sue and be sued clause. | 13 CFR § 120.110(j); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Government-Owned Entities |
| Business | Outcome | How the rule reads | Source |
|---|---|---|---|
| Owns property and leases it to others (landlord or developer that does not use the space) | Barred | Businesses primarily engaged in owning or purchasing real estate and leasing it for any purpose are not eligible. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Company that owns property and leases it to my own operating company | On conditions | An Eligible Passive Company may hold property and lease it to an Operating Company that is itself eligible. The Operating Company must guarantee or co-borrow, each 20% owner must guarantee, and rent is limited. | 13 CFR § 120.111; 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 2, Para. A, Eligible Passive Companies |
| Subdivides land into lots and develops it for resale | Barred | Businesses primarily engaged in subdividing real property into lots and developing it for resale on their own account are not eligible. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Apartment building or mobile home park | Barred | Under SBA rules, apartment buildings and mobile home parks are not eligible. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Shopping center, office suites, salon suites, ghost kitchen or similar space rented to independent businesses | Depends | These models are not eligible unless revenue is membership dues, customers have no assigned space, and the business supplies upkeep and equipment. A combined model is not eligible. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Leases land for a cell tower, solar panels, a billboard or a wind turbine | Barred | Businesses that lease land for a cell phone tower, solar panels, billboards or a wind turbine are not eligible. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| EV charging station or other stand-alone asset run on a passive basis | Barred | EV-charging stations and businesses structured as a stand-alone asset operated on a passive basis are not eligible. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Nursing home, assisted living or similar residential care facility | Depends | Licensed nursing homes, assisted living facilities and state-licensed equivalents that provide healthcare or medical services are eligible. Unlicensed residential facilities without those services are not. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Hotel, motel, RV park, marina, campground or short-term rental | Depends | These businesses are eligible if more than 50% of prior-year revenue comes from transients staying 30 days or less. The business must also comply with zoning and other laws. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Cleaning or similar service where I rely on a middle-level operator and do not own the customer contracts | Barred | A leveled model that relies on a middle-level operator and does not own the contracts behind the business is not eligible. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Business | Outcome | How the rule reads | Source |
|---|---|---|---|
| Casino, racetrack, skill games or other business whose purpose is gambling | Barred | If the purpose of the business is gambling, it is not eligible, regardless of the share of revenue from gambling. | 13 CFR § 120.110(g); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Legal Gambling |
| A business with some lottery, gaming-machine or other legal gambling income | Depends | More than one third of prior-year gross revenue, including rental income, from legal gambling makes a business ineligible. | 13 CFR § 120.110(g); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Legal Gambling |
| Business | Outcome | How the rule reads | Source |
|---|---|---|---|
| Grows, produces, processes, distributes or sells marijuana products | Barred | A business that grows, produces, processes, distributes or sells marijuana or marijuana products is ineligible, even where state law allows it. | 13 CFR § 120.110(h); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Illegal Activity, Marijuana, Hemp and CBD |
| Sells devices primarily intended or marketed for marijuana use | Barred | A business selling smoking devices or other products primarily intended for marijuana use, or marketing them for that use, is ineligible. | 13 CFR § 120.110(h); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Illegal Activity, Marijuana, Hemp and CBD |
| Grows, produces, processes, distributes or sells hemp products | On conditions | A hemp business is eligible only if the hemp meets the federal definition and any state definition. The lender must obtain documentation. | 13 CFR § 120.110(h); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Illegal Activity, Marijuana, Hemp and CBD |
| Makes or sells CBD products | On conditions | CBD eligibility turns on where the CBD comes from, the product types, any health claims, and whether every product complies with law. The SOP cites FDA guidance against adding CBD to food and dietary supplements. | 13 CFR § 120.110(h); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Illegal Activity, Marijuana, Hemp and CBD |
| Business | Outcome | How the rule reads | Source |
|---|---|---|---|
| Any activity that is illegal under federal, state or local law | Barred | Businesses engaged in any activity that is illegal under federal, state or local law are not eligible. | 13 CFR § 120.110(h); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Illegal Activity, Marijuana, Hemp and CBD |
| Private club or business that limits memberships for reasons other than capacity | Barred | Private clubs and businesses that limit memberships for reasons other than capacity are not eligible. | 13 CFR § 120.110(i); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Restricted Patronage and Discriminatory Hiring |
| Men-only or women-only business, such as a health club | Barred | Businesses that restrict patronage for any reason other than capacity are not eligible. A men's or women's only health club is the SOP's example. | 13 CFR § 120.110(i); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Restricted Patronage and Discriminatory Hiring |
| Fitness center that markets to one gender but admits both | On conditions | A fitness center that markets to one gender may be eligible if it permits both men and women. The lender needs an affidavit and evidence that the facility is open to both. | 13 CFR § 120.110(i); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Restricted Patronage and Discriminatory Hiring |
| Hires only one gender, or otherwise has discriminatory hiring practices | Barred | Except as the Civil Rights Act permits, businesses with discriminatory hiring practices are not eligible. | 13 CFR § 120.110(i); 13 CFR § 113.3(a); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Restricted Patronage and Discriminatory Hiring |
| Pyramid or multilevel sales plan | Barred | Businesses using pyramid or multilevel sales distribution plans are not eligible. | 13 CFR § 120.110(f); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Pyramid Sales Plans |
| Adult entertainment, or products or services of a prurient sexual nature | Depends | A business presenting live or recorded performances of a prurient sexual nature is not eligible. Neither is one earning more than 5% of gross revenue from such products or services. | 13 CFR § 120.110(p); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Prurient Sexual Nature |
| Political or lobbying business | Depends | An applicant that derives over 50% of gross annual revenue from political or lobbying activities is not eligible. | 13 CFR § 120.110(r); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Political or Lobbying Activities |
| Oil wildcatting, trading securities or commodities, mining gold or silver outside established fields, research and development, or homes built for future sale | Barred | Speculative businesses are not eligible. Homes built with no sales contract in place can qualify only under the 7(a) Builders CAPLines program. | 13 CFR § 120.110(s); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Speculation |
| Commodity contracts to lock in a price, oil drilling in established fields, or a home built for an identified buyer | Not barred | These activities are listed by the SOP as non-speculative businesses that may be eligible. | 13 CFR § 120.110(s); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Speculation |
| Located outside the United States | Barred | Businesses located in a foreign country are not eligible. | 13 CFR § 120.100(c); 13 CFR § 120.110(e); SOP 50 10 8.1, Sec. A, Ch. 1, Para. C, Located in the United States |
| Not listed here, or not sure | Check the facts | This check could not match your business to a listed type. Read the full list on this page and ask a lender whether any rule applies. | 13 CFR § 120.110; SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Types of Ineligible Businesses |
Owner and history rules
| Situation | Outcome | How the rule reads | Source |
|---|---|---|---|
| Is the business located in the United States or its territories or possessions? No | Barred | Businesses located in a foreign country are not eligible. | 13 CFR § 120.100(c); 13 CFR § 120.110(e); SOP 50 10 8.1, Sec. A, Ch. 1, Para. C, Located in the United States |
| Is the business small under SBA size standards, counting affiliates? No | Barred | Applicants must be small under 13 CFR Part 121, including affiliates. | 13 CFR § 120.100(d); SOP 50 10 8.1, Sec. A, Ch. 1, Para. D, Small Under SBA Size Requirements |
| Is this a franchise or a brand license? Yes, and the brand is not on the Directory | Barred | A brand that meets the FTC definition of a franchise must be on the SBA Franchise Directory to obtain SBA financing. | SOP 50 10 8.1, Sec. A, Ch. 1, Para. G.5 (Para. G begins p. 30); SOP 50 10 8.1, Sec. A, Ch. 1, Para. G, Franchises |
| Does a management company run the business? Yes, and the manager has sole discretion over operations | Barred | Businesses that give a management company sole discretion over operations are ineligible passive businesses. | 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Passive Businesses |
| Does the SBA lender, or an associate of the lender, own part of the business? Yes | Barred | Businesses in which an SBA lender or any of its Associates owns an equity interest are not eligible. The exception is an Associate that is an SBIC. | 13 CFR § 120.110(o); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Lender Equity Interests; 13 CFR § 120.104 |
| Does the SBA lender, or an associate of the lender, own part of the business? The lender is an SBLC and an associated SBIC financed the business | Barred | A Small Business Lending Company may not lend to an applicant financed by an SBIC that is its Associate. | 13 CFR § 120.476; SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Types of Ineligible Businesses |
| Is the business located in the Coastal Barrier Resource System? Yes | Barred | SBA may not make or guarantee a loan within the Coastal Barrier Resource System. | 13 CFR § 120.175; SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Coastal Barrier Resource System |
| Situation | Outcome | How the rule reads | Source |
|---|---|---|---|
| Are all direct and indirect owners and required guarantors U.S. citizens or U.S. nationals whose principal residence is in the United States? No | Barred | All direct and indirect owners and required guarantors must be U.S. citizens or U.S. nationals. Their principal residence must be in the United States, its territories or possessions. An Ineligible Person must fully divest before the SBA loan number is issued. Lawful permanent residents may not own any percentage of the applicant. The look-back period is 6 months before the SBA loan number is issued. | SOP 50 10 8.1, Sec. A, Ch. 1, Para. F, Citizenship and Residency Requirements; SOP 50 10 8.1, App. 3, Definitions, Ineligible Person and Associate; SBA Policy Notice 5000-876441 (effective March 1, 2026) |
| Is any owner of more than 20%, officer, director or key employee in prison, under indictment, or on parole or probation? In prison or serving a sentence | Barred | Businesses with an Associate currently incarcerated or serving a sentence of imprisonment are not eligible. | 13 CFR § 120.110(n); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Associates Incarcerated or Under Indictment; SOP 50 10 8.1, App. 3, Definitions, Ineligible Person and Associate |
| Is any owner of more than 20%, officer, director or key employee in prison, under indictment, or on parole or probation? Under indictment for a felony or a crime of financial misconduct or false statement | Barred | Businesses with an Associate under indictment for a felony or a crime involving financial misconduct or a false statement are not eligible. | 13 CFR § 120.110(n); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Associates Incarcerated or Under Indictment; SOP 50 10 8.1, App. 3, Definitions, Ineligible Person and Associate |
| Is any owner of more than 20%, officer, director or key employee in prison, under indictment, or on parole or probation? On parole or probation | On conditions | A business owned by someone on parole or probation may be eligible. If the business depends mainly on that person, the lender needs a continuity plan and may require another guaranty. | 13 CFR § 120.110(n); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Associates Incarcerated or Under Indictment; SOP 50 10 8.1, App. 3, Definitions, Ineligible Person and Associate |
| Situation | Outcome | How the rule reads | Source |
|---|---|---|---|
| Has the business, an owner, or another business they owned or controlled defaulted on a federal loan and caused the government a loss? Yes, and it has not been fully satisfied | Barred | An applicant with a prior loss to the federal government is not eligible for a 7(a) or 504 loan unless SBA grants a waiver. | 13 CFR § 120.110(q); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Prior Loss to the Government |
| Has the business, an owner, or another business they owned or controlled defaulted on a federal loan and caused the government a loss? Yes, and it has been fully satisfied | On conditions | If a prior loss is fully satisfied, the application can be processed. The lender must document how it was satisfied. | 13 CFR § 120.110(q); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Prior Loss to the Government |
| Does the business or any guarantor owe a non-tax federal debt that is more than 90 days past due? Yes | Barred | An applicant is not eligible if the applicant or any guarantor, except a Supplemental Guarantor, owes an outstanding non-tax federal debt in delinquent status. | 31 CFR § 285.13; SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Delinquent Federal Debt |
| Does the business or any guarantor owe a non-tax federal debt that is more than 90 days past due? Past due, but covered by a compromise, cure, repayment agreement, bankruptcy or appeal | On conditions | A debt is not delinquent if it was compromised or cured, or if it is in bankruptcy with any plan current. The same holds under a satisfactory written repayment agreement paid as agreed, or during an appeal. A loss still triggers the prior-loss rule. | 31 CFR § 285.13; SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Delinquent Federal Debt |
| If the business has an existing SBA 7(a) or 504 loan, is it current? No, it is not current | Barred | A business is ineligible if its existing 7(a) or 504 loan is not current when the new SBA loan number is issued. Current means no required payment has remained unpaid more than 29 days. | SOP 50 10 8.1, Sec. A, Ch. 1, Para. E, Existing 7(a) or 504 Loan Not Current |
Common questions
Can a start-up apply?
Yes. SBA has no general minimum time in business. What start-ups need.
Does SBA set a minimum credit score?
SBA sets no minimum credit score; the lender applies its own credit standards.
Can a green card holder own part of the business?
Not under the current rule. Lawful permanent residents may not own any percentage of the applicant. That is in SBA Policy Notice 5000-876441 and SOP 50 10 8.1, Sec. A, Ch. 1, Para. F. Read the full answer.
Does passing this check mean I will get a loan?
No. This check only reads your answers against the written rules. A lender still reviews size, credit and use of proceeds, and it can decline for its own reasons.
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<p><a href="https://www.sbaexpress.loans/tools/am-i-eligible/">SBA eligibility check</a> from SBA Express Loans</p>How to read this
Every outcome here comes from 13 CFR 120.110 and SOP 50 10 8.1, effective October 1, 2026. The regulation is current through November 5, 2026. We do not store your answers.
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Cite this page: Am I eligible for an SBA loan? Check your business type. SBA Express Loans, Janover Capital LLC (data as of November 5, 2026). https://www.sbaexpress.loans/tools/am-i-eligible/
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