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SBA rules · SOP 50 10 8.1

Can an SBA loan finance a bail bonds company?

No, an SBA loan cannot finance a bail bond company.

Quoted from SBA SOP 50 10 8.1Every quote checked word for word

In detail

  • Ineligible business activity: SBA regulations prohibit guaranteeing loans to businesses primarily engaged in lending, investment, or financing, which explicitly includes bail bond companies.
  • Scope of restriction: An ineligible business cannot obtain an SBA loan for any purpose, including working capital or the purchase or construction of a building for its own use.

The source

What the SOP says

“SBA cannot guarantee a loan that provides funds to businesses primarily engaged in lending, investment, or to an otherwise eligible business engaged in financing, factoring, or investment not related or essential to the business.
SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Types of Ineligible Businesses (lines 388-399)✓ Verified
“Bail Bond Companies; and
SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Types of Ineligible Businesses (lines 388-399)✓ Verified
“An ineligible business cannot obtain an SBA Loan for any purpose, including the purchase or construction of a building for its own use.
SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Note (lines 432-434)✓ Verified

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More on who and what is eligible

Can an ESOP get an SBA loan?Can an SBA loan finance a business in a foreign country?Can an SBA loan finance a business owned by a Native American tribe?Can an SBA loan finance a business run by a management company?Can an SBA loan finance a business that sells adult products?Can an SBA loan finance a business with gambling revenue?All SBA rules

Related reading

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This page quotes the SBA's Standard Operating Procedure 50 10 8.1. Lenders can ask for more than the SBA minimum. It is general information, not a loan approval or legal advice.