SBA SOP 50 10 8.1, A.Ch1.B — Organized for Profit

sba-sop81-a-ch1-b

Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section A.Ch1.B (Organized for Profit). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 1 provision(s) quoted from SBA's .docx.

This register: .xlsx .csv

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 8.1, 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 8.1 A.Ch1.B

Effective 2026-10-01 · 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. To determine an Applicant’s for-profit status, the SBA Lender may review the Applicant’s organizational documents, for example: a. Articles of Incorporation/Organization (filed with the Secretary of State or similar department in the state where the Applicant is organized); b. Corporate bylaws and any amendments; c. Partnership Agreements; d. Association Bylaws; and e. Tax Returns. 2. If all other eligibility requirements are met, 13 CFR § 120.110(a) permits for-profit subsidiaries of a non-profit to be eligible for SBA assistance. a. The SBA Lender must include the non-profit affiliate’s receipts or employees, as applicable, when determining the for-profit entity’s size, except the size of a business concern owned and controlled by a Native Hawaiian Organization (NHO) which 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). b. Loan proceeds must be used exclusively for the benefit of the for-profit business. c. 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.

Source: SBA SOP 50 10 8.1, A.Ch1.B — Organized for Profit · source URL · snapshot 0fb0c4692cf52938

Get this regulation in your AI window

Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.

Open in Claude Open in ChatGPT

Open in Claude shows the one-time setup: paste one address, no account with us. Open in ChatGPT asks ChatGPT about this page, with no setup. Either way it’s free.

Get notified if this rule changes

One email when SBA SOP 50 10 8.1, A.Ch1.B — Organized for Profit changes: what changed, the new verbatim text, and the effective date. Nothing else.

Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.

Source of record: https://claudeforcompliance.com/regs/sba-sop81-a-ch1-b/ · register sba-sop81-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.