Businesses Engaged in Any Illegal or Fraudulent Activities Under Federal, State or Local Law
Businesses Engaged in Lending
Life Insurance Companies (but not independent agents);
Bail Bond Companies; and
Other businesses whose stock in trade is money.
Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except as Eligible Passive Companies under 13 CFR § 120.111) are not eligible.
Businesses primarily engaged in subdividing real property into lots and developing it for resale on its own account are not eligible.
Businesses that are primarily engaged in owning or purchasing real estate and leasing it for any purpose are not eligible. For example, shopping centers, salon suites, and similar business models that generate income by renting space to accommodate independent businesses that provide services directly to the public are not eligible.
Businesses that lease land for the installation of a cell phone tower, solar panels, billboards, or wind turbine also are not eligible. However, the business operating the cell phone tower, solar panel, billboard, or wind turbine is eligible.
Businesses that have entered into a management agreement with a third party that gives the management company sole discretion to manage the operations of the business, including control over the employees, the finances and the bank accounts of the business, with no involvement by the owner(s) of the Applicant business, are not eligible.
Apartment buildings and mobile home parks are not eligible.
Residential facilities that do not provide healthcare and/or medical services are not eligible.
Money Service Businesses
Business Involved in the Cannabis Industry
Business Involved in the Gambling Industry
Life Insurance Companies
Business Located in a Foreign Country or Owned by Undocumented (Illegal) Aliens
Businesses Selling Through a Pyramid Plan
Government-Owned Entities, Excluding Native American Tribes
Businesses Engaged in SBA Loan Packaging
Businesses Providing Sexual Material
Businesses primarily engaged in political or lobbying activities
Speculative businesses are not eligible. This prohibits loans to an Applicant for:
The sole purpose of purchasing and holding an item until the market price increases; or
Engaging in a risky business for the chance of an unusually large profit.
Speculative businesses include:
Wildcatting in oil;
Dealing in stocks, bonds, commodity futures, and other financial instruments;
Mining gold or silver in other than established fields;
Research and Development; and
Building homes for future sale (except under the Builders CAPLines program).
Small Business Lending Company (SBLC)
Businesses Owned by Non-U.S. Citizens
Businesses whose owners (including partial owners) are (a) currently indicted or arraigned, or (b) on parole for a criminal charge; or (c) were convicted of a felony within the last five years.
— 1 This list is not an exhaustive list of all ineligible businesses.