SBA rules · SOP 50 10 8.1

Can an SBA loan finance a check cashing business?

Yes, an SBA 7(a) or 504 loan can be used to finance a check cashing business if it receives more than 50% of its revenue from the service of cashing checks.

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

In detail

Eligibility exception: Businesses primarily engaged in lending or whose stock in trade is money are generally ineligible, but a check cashing operation is explicitly eligible under limited circumstances if more than 50% of its revenue is derived from check cashing services.
Program applicability: This rule is part of the core applicant eligibility standards, which apply to both the 7(a) and 504 loan programs.

The source

What the SOP says

“A check cashing business is eligible if it receives more than 50% of its revenue from the service of cashing checks.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Certain businesses engaged in lending may be eligible under limited circumstances: (lines 400-405)✓ Verified

“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

“This Chapter addresses the core program eligibility requirements that apply to all loans made under either the 7(a) or the 504 Programs.

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements (lines 321-326)✓ Verified

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