SBA rules · SOP 50 10 8.1

Can an SBA loan finance an insurance agency?

Yes, independent insurance agencies and brokerages are eligible for SBA 7(a) and 504 loan financing, whereas life insurance companies and carriers are ineligible.

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

In detail

Independent agents: While the SBA prohibits financing to businesses primarily engaged in lending, financing, or investment, it explicitly carves out independent agents from the prohibition against life insurance companies.
Carriers and underwriters: In contrast to independent agents, life insurance companies and life insurance carriers are expressly barred from receiving SBA loan assistance.
Standard eligibility: An eligible insurance agency or brokerage must still comply with all core program requirements, including being organized for profit, qualifying as small under applicable size standards, and demonstrating that credit is not available elsewhere.

The source

What the SOP says

“Life Insurance Companies (but not independent agents);

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Types of Ineligible Businesses (lines 388-399)✓ Verified

“Life insurance carriers are not eligible. 13 CFR § 120.110(d)

SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Life insurance carriers are not eligible. 13 CFR § 120.110(d) (lines 435-444)✓ Verified

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