{"id":18334,"date":"2025-07-19T22:09:13","date_gmt":"2025-07-19T22:09:13","guid":{"rendered":"https:\/\/finderica.com\/?p=18334"},"modified":"2025-07-19T22:09:13","modified_gmt":"2025-07-19T22:09:13","slug":"sba-loan-automatic-disqualifications-ss","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=18334","title":{"rendered":"SBA Loan Automatic Disqualifications – SS"},"content":{"rendered":"
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It\u2019s well-known that while SBA loans offer low interest rates and long repayment terms, they require a time-consuming and paperwork-heavy application process.<\/span><\/p>\n<\/div>\n

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Before you dive into your application, you should familiarize yourself with this list of factors that can automatically disqualify you from an <\/span>SBA loan<\/span>.<\/span><\/p>\n<\/div>\n

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We\u2019ll start with a brief questionnaire to better understand the unique needs of your business.<\/p>\n

Once we uncover your personalized matches, our team will consult you on the process moving forward.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

1. Your business is partially owned by a non-U.S. citizen.<\/span><\/h2>\n
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Previously, businesses partially owned by non-U.S. citizens were eligible for SBA loans \u2014 as long as at least 51% of the business was owned by a U.S. citizen or permanent resident. But, in the first half of 2025, the Trump Administration made a number of <\/span>changes to SBA loan guidelines<\/span>, including requiring a business to be 100% owned by U.S. citizens, nationals or lawful permanent residents to qualify.<\/span><\/p>\n<\/div>\n

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Additionally, if you\u2019re a U.S. citizen but your business is located in a foreign country, then it doesn\u2019t make sense for you to move forward with an SBA loan application. The SBA requires that your business be within the United States to be eligible for one of its loan programs. <\/span><\/p>\n<\/div>\n

2. You employ too many people or generate too much revenue.<\/span><\/h2>\n
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This automatic disqualification is one of the more complex ones to distill. The SBA has strict guidelines for what classifies a business as \u201csmall.\u201d But the exact requirements vary by industry and depend on either the total number of employees or the total annual revenue. The SBA gets incredibly granular with industries, assigning a numbered code to each and publishing a chart of <\/span>small business size standards by industry<\/span><\/a>. Use the chart to determine whether your business is automatically ineligible based on its size.<\/span><\/p>\n<\/div>\n

3. You operate a nonprofit, MLM or other ineligible business.<\/span><\/h2>\n
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Nonprofit businesses top the <\/span>SBA\u2019s list of ineligible business types<\/span><\/a>. The complete list includes more than a dozen different business types that are automatically disqualified from SBA loans. Some are those you might expect: businesses engaging in illegal activities, pyramid schemes, companies operating in the pornography industry. But several more business types that make this list may surprise you. See the dropdown below to determine if your business falls under one of the ineligible categories.<\/span><\/p>\n<\/div>\n

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Businesses ineligible for an SBA loan<\/span><\/p>\n

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