Eligibility for SBA Loan Guarantees

To be eligible for an SBA loan guarantee, a business must meet all of the following criteria:

In addition, the business must:

  • be for-profit
  • be independently owned and operated
  • not be dominant in its industry
  • have applied for, and been denied, a conventional loan by a private lender


If at least two conventional lenders have denied your loan application, you may want to rethink, or rework, your business plans. Try to assess whether the denials are based upon factors that you can realistically overcome if your business gets going or whether adjustments in your plans are necessary.