There are many different businesses and organizations that are not eligible for SBA 504 loans.

  • A not-for-profit (exception for sheltered workshops)
  • Engaged in lending: a passive holder of real estate and/or personal property; a life insurance company (however an insurance agency is eligible)
  • Located in a foreign country or owned by aliens who do not have legal permanent resident status
  • Has restriction on patronage
  • A government-owned entity (exception for Native American tribes)
  • Engaged in promoting religion
  • Consumer and marketing cooperatives (producer cooperatives are eligible)
  • Engaged in loan packaging
  • Owners or associates of poor character
  • Equity interest by lender, CDC, or associates in applicant concern
  • Provides prurient sexual material
  • Has previously defaulted on a federal loan
  • Engaged in political or lobbying activities
  • Speculative businesses