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
