The following businesses are not eligible for an SBA Loan Guarantee and thus may not be viewed as lendable by a commercial loan officer:
- Non-profit businesses
- Financial businesses primarily engaged in the business of lending, such as banks, finance companies and factors
- Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies)
- Life insurance companies
- Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify
- Pyramid sales distribution plans’
- Businesses deriving more than one-third of gross annual revenue from legal gambling activities
- Businesses engaged in any illegal activity
- Private clubs and businesses which limit the number of memberships for reasons other than capacity
- Government-owned entities (except for businesses owned or controlled by a Native American tribe
- Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting
- Consumer and marketing cooperatives (producer cooperatives are eligible)
- Loan packagers earning more than one-third of their gross annual revenue from packaging SBA loans
- Businesses with an Associate who is incarcerated, on probation, on parole or has been indicted for a felony or a crime of moral turpitude
- Businesses in which the lender or any of its Associates owns an equity interest
- Businesses which present live performances of a prurient sexual nature; or derive directly or indirectly more than 5% of their gross revenues through the sale of products or services or the presentation of any depictions or displays of a prurient sexual nature
- A business or applicant involved in a business which defaulted on a Federal loan or Federally assisted financing resulting in a loss to the government. A compromise agreement shall also be considered a loss
- Businesses primarily engaged in political or lobbying activities and
- Speculative businesses (such as oil wildcatting)
