SBA SOP 50 10 8, A.Ch1.E.18 — Speculation 13 CFR § 120.110 (s)
Verbatim text of SBA SOP 50 10 8 section A.Ch1.E.18 (Speculation 13 CFR § 120.110 (s)), effective 2025-06-01. 2 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 SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, A.Ch1.E.18 — Speculation 13 CFR § 120.110 (s) — 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.E.18
18. Speculation 13 CFR § 120.110 (s) Speculative businesses are not eligible. This prohibits loans to an Applicant for: i. The sole purpose of purchasing and holding an item until the market price increases; or ii. Engaging in a risky business for the chance of an unusually large profit. Speculative businesses include: i. Wildcatting in oil; ii. Dealing in stocks, bonds, commodity futures, and other financial instruments; iii. Mining gold or silver in other than established fields; iv. Research and Development; and
SOP 50 10 8 A.Ch1.E.18.v
v. Building homes for future sale (except under the 7(a) Builders CAPLines program). Note: Construction of homes for future sale with no sales contract in place (spec homes) is eligible under the 7(a) Builders CAPLines program. 13 CFR § 120.391 Non-speculative businesses that may be eligible include: i. A business, such as a grain elevator, that uses a commodity contract to lock in a price; ii. A farmer who uses a commodity contract to lock in the sale price of his or her harvest; iii. A business engaged in drilling for oil in established fields; and iv. A business engaged in building a home under contract with an identified purchaser. 19. A Small Business Lending Company (SBLC) may not make a loan to an Applicant that has received financing (or a commitment for financing) from a Small Business Investment Company (SBIC) that is an Associate of the SBLC. 13 CFR § 120.476 20. Businesses located within the Coastal Barrier Resource System. 13 CFR § 120.175 21. The business is ineligible if the Applicant business has an existing 7(a) or 504 loan that is not current at the time of issuance of the new 7(a) or 504 SBA loan number. “Current” means that a required payment has not remained unpaid for more than 29 days. A loan that has matured and not been paid within 29 days of the maturity date is not current and is not eligible for refinancing.
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Source of record: https://claudeforcompliance.com/regs/sba-sop-a-ch1-e-18/
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