Small business answers — NOW!

SBA loan guaranty restrictions

Question
Are there any restrictions on the type of business that can receive an SBA loan guaranty? 
Answer
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. 
Brain Trust contributor: Author of Instant Profits: Making Your Business Pay
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 963