SBA rules
SBA loan rules, answered from the SOP
The SBA's rulebook for 7(a) and 504 loans runs past 400 pages. Each answer here is a short reading of one rule, with the SOP's own words quoted underneath so you can check it.
Buying a business
- Are earnouts allowed in an SBA business acquisition?
- Can an SBA loan be paired with a conventional loan (pari passu)?
- Can an SBA loan be used for a stock purchase or an asset purchase?
- Can an SBA loan be used to buy a business from a family member?
- Can an SBA loan be used to buy a franchise?
- Can an SBA loan pay for a non-compete agreement?
- Can an SBA loan pay for goodwill?
- Can an SBA loan refinance a seller note?
- Can a seller note count toward the SBA down payment?
- Can the seller stay on after an SBA business acquisition?
- Does SBA require a business valuation to buy a business?
- Does the lender have to visit the business I am buying?
- Does the seller have to guarantee the SBA loan?
- How long is an SBA loan to buy a business?
- When does an SBA loan require a quality of earnings report?
Collateral
- Does an SBA loan require an appraisal?
- Does an SBA loan require an environmental report?
- Does an SBA loan require collateral?
- Does an SBA loan require life insurance?
- Does an SBA loan take a lien on my vehicles?
- Is flood insurance required on an SBA loan?
- Is hazard insurance required on an SBA loan?
- What insurance does an SBA loan require?
- What is a Records Search with Risk Assessment (RSRA) for an SBA loan?
- What lease does a business need for an SBA loan?
- When does an SBA loan need a Phase I environmental site assessment?
- When does an SBA loan require an equipment appraisal?
Down payment
Who and what is eligible
- Can a business owned by a trust get an SBA loan?
- Can a government employee get an SBA loan?
- Can an ESOP get an SBA loan?
- Can an SBA loan finance a bail bonds company?
- Can an SBA loan finance a business in a foreign country?
- Can an SBA loan finance a business owned by a Native American tribe?
- Can an SBA loan finance a business run by a management company?
- Can an SBA loan finance a business that sells adult products?
- Can an SBA loan finance a business with gambling revenue?
- Can an SBA loan finance a cannabis business?
- Can an SBA loan finance a check cashing business?
- Can an SBA loan finance a coworking space?
- Can an SBA loan finance a financial advisor's practice?
- Can an SBA loan finance a gas station?
- Can an SBA loan finance a hemp or CBD business?
- Can an SBA loan finance a hotel or motel?
- Can an SBA loan finance a lobbying or political consulting firm?
- Can an SBA loan finance a medical, dental or law practice?
- Can an SBA loan finance a mortgage company?
- Can an SBA loan finance a multilevel marketing business?
- Can an SBA loan finance an apartment building or mobile home park?
- Can an SBA loan finance an equipment rental business?
- Can an SBA loan finance an insurance agency?
- Can an SBA loan finance an oil and gas drilling business?
- Can an SBA loan finance a nonprofit?
- Can an SBA loan finance an RV park, campground or marina?
- Can an SBA loan finance a nursing home or assisted living facility?
- Can an SBA loan finance a pawn shop?
- Can an SBA loan finance a research and development company?
- Can an SBA loan finance a salon or barber shop that rents chairs?
- Can an SBA loan finance a salon suite business or ghost kitchen?
- Can an SBA loan finance a women-only gym?
- Can an SBA loan finance building homes for sale or house flipping?
- Can an SBA loan finance EV charging stations?
- Can an SBA loan finance land leased for a cell tower or billboard?
- Can an SBA loan finance rental property or investment real estate?
- Can a real estate holding company get an SBA loan?
- Can a startup get an SBA 7(a) loan?
- Can I get a new SBA loan if my current SBA loan is behind on payments?
- Can I get an SBA loan if I defaulted on a previous SBA or EIDL loan?
- Can I get an SBA loan if I owe delinquent federal debt?
- Can I get an SBA loan with a criminal record?
- Can you get an SBA loan after bankruptcy?
- Can you have more than one SBA loan?
- Do affiliated businesses count toward SBA size and loan limits?
- Does a franchise have to be on the SBA Franchise Directory?
- Does an SBA loan require tax transcripts?
- Is there a minimum credit score for an SBA loan?
- What are the requirements for an SBA loan?
- What are the SBA Express loan requirements?
- What does credit not available elsewhere mean for an SBA loan?
- What is CAIVRS and how does it affect an SBA loan?
Fees
- Can a broker or consultant charge a fee on an SBA loan?
- Can a lender charge a packaging fee on an SBA loan?
- How much is the SBA guaranty fee?
- Is the SBA guaranty fee waived in 2027?
- What are the fees on an SBA 504 loan?
- What fees can a lender charge on an SBA loan?
- What is SBA Form 159?
- Who pays the SBA annual service fee?
Owners and citizenship
- Can a business with a foreign investor or foreign parent company get an SBA loan?
- Can a Chinese citizen own part of a business that gets an SBA loan?
- Can a DACA recipient get an SBA loan?
- Can a green card holder get an SBA loan?
- Can a naturalized citizen get an SBA loan?
- Can a non-citizen sign a guaranty on an SBA loan?
- Can an SBA loan have a cosigner?
- Can an undocumented immigrant work for or run a business with an SBA loan?
- Can a refugee or asylee get an SBA loan?
- Can a U.S. citizen living abroad get an SBA loan?
- Can a visa holder get an SBA loan?
- Can I get an SBA loan if I am behind on child support?
- Can my minor child own part of a business that gets an SBA loan?
- Does an SBA loan require a personal guarantee?
- Does my spouse have to sign for an SBA loan?
- Does the SBA look at owners who sold their shares before the loan?
- What is SBA Form 1919?
- What is SBA Form 413?
SBA 504
- Can a new business get an SBA 504 loan?
- Can an SBA 504 loan be used to buy a business?
- Can an SBA 504 loan refinance existing debt?
- What are the SBA 504 loan requirements?
- What can an SBA 504 loan be used for?
- What is a CDC in an SBA 504 loan?
- What is a special purpose property for an SBA loan?
- What is the SBA 504 job creation requirement?
- What is the third party lender in an SBA 504 loan?
Refinancing
Loan terms and rates
- Can an SBA loan be assumed by a buyer?
- Can an SBA loan be increased after approval?
- Can an SBA loan have a fixed interest rate?
- Can an SBA loan have interest-only payments?
- Do SBA loans have balloon payments?
- How long are SBA loan terms?
- How much of an SBA loan does the SBA guarantee?
- How often can the rate on an SBA loan change?
- Is there a prepayment penalty on an SBA loan?
- What is the maximum interest rate on an SBA 7(a) loan?
- What is the maximum SBA loan amount?
What the money can pay for
- Can an SBA loan be used for construction?
- Can an SBA loan be used to buy equipment?
- Can an SBA loan be used to buy land?
- Can an SBA loan be used to pay taxes?
- Can an SBA loan cover closing costs and fees?
- Can an SBA loan pay for inventory?
- Can an SBA loan pay for leasehold improvements?
- Can an SBA loan pay off business credit card debt?
- Can an SBA loan refinance a HELOC used for the business?
- Can an SBA loan refinance a merchant cash advance?
- Can you get an SBA line of credit?
- Can you use an SBA loan to buy commercial real estate?
- What can't an SBA loan be used for?
- What is an SBA CAPLines loan?
- What is an SBA Export Express loan?
- What is an SBA MARC loan for manufacturers?
- What is the SBA Export Working Capital Program?