SBA SOP 50 10 8, A.Ch1.B — ORGANIZED FOR PROFIT

sba-sop-a-ch1-b

Verbatim text of SBA SOP 50 10 8 section A.Ch1.B (ORGANIZED FOR PROFIT), effective 2025-06-01. 1 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.

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See also

SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.

Verbatim regulatory text (1)

Verbatim provisions from SBA SOP 50 10 8, A.Ch1.B — ORGANIZED FOR PROFIT — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

SOP 50 10 8 A.Ch1.B

Effective 2025-06-01 · publisher's stamp for this provision

B. ORGANIZED FOR PROFIT 13 CFR § 120.100(b) All Applicants must be organized for profit. Non-profit businesses are not eligible for SBA business loan assistance. For-profit subsidiaries of non-profits may be eligible. 1. In order to determine an Applicant’s for-profit status, the SBA Lender may review the Applicant’s organizational documents, for example: Articles of Incorporation/ Organization (filed with the Secretary of State or similar department in the state where the Applicant is organized); Corporate bylaws and any amendments; Partnership Agreements; Association Bylaws; and Tax Returns. 2. If all other eligibility requirements are met, 13 CFR § 120.110(a) allows for-profit entities that are subsidiaries of a non-profit to be eligible for SBA assistance. The SBA Lender must include the non-profit affiliate’s receipts or employees, as applicable, in determining the for-profit entity’s size, except that the size of a business concern owned and controlled by a Native Hawaiian Organization (NHO) is measured independent of its parent NHO, and of other concerns owned by the NHO based on common ownership, management, or the performance of common administrative services. 13 CFR § 121.103(b)(2). The loan proceeds must be used exclusively for the benefit of the for-profit business. If the non-profit affiliate owns 20% or more of the for-profit business but cannot or will not guarantee the loan, the for-profit business is not eligible for SBA assistance.

Source: SBA SOP 50 10 8, A.Ch1.B — ORGANIZED FOR PROFIT · source URL · snapshot 535743ffe062cc34

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Source of record: https://claudeforcompliance.com/regs/sba-sop-a-ch1-b/ · register sba-sop-a-ch1-b · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.