SBA loan guaranty restrictions
Are there any restrictions on the type of business that can receive an SBA loan guaranty?
According to the Small Business Administration, the vast majority of businesses are eligible for a loan guaranty from the SBA, including but not limited to those that meet the following criteria:
- Are considered a "for-profit" business
- Are engaged in, or propose to do business in, the United States or its possessions
- Have reasonable owner equity to invest
- Use alternative financial resources first, including personal assets
In addition to the obvious, illegal activities, other businesses that are not eligible include but are not limited to: loan packaging, speculation, gambling, investment or lending.
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