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Other SBA Loan Considerations
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- If you want to use an SBA-backed
loan for a franchise, you need to examine the franchise
agreement carefully. If it is very restrictive, so that its
like working for the franchising company, you may not be able
to qualify for an SBA loan.
- Recreational facilities or
clubs must be open to the general public or, if membership
is a requirement, it must be open to all groups of people and
cannot set a maximum quota for membership for any group.
- Farms and other agricultural
businesses are eligible for SBA-backed loans but should go first
to the Farmers Home Administration programs for consideration.
The Farmers Home Administration offers financial assistance in
rural areas and their key goal is to help the economy in those
areas and create jobs. The FmHA also offers some direct loans
through the Intermediary Lending Program.
- Boats for fishing are eligible
for SBA-backed loans but financing for vessels larger than 5 tons
must first be requested from the National Marine Fisheries Service,
part of the Department of Commerce.
- Medical facilities are
eligible. These include hospitals, clinics, emergency outpatient
treatment, medical and dental laboratories. Properly licensed
convalescent and nursing are also eligible as long as they provide
greater services than room and board.
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