SBA rules · SOP 50 10 8.1
Can an SBA loan finance a multilevel marketing business?
No, businesses using pyramid or multilevel sales distribution plans are ineligible for SBA financing.
Quoted from SBA SOP 50 10 8.1Every quote checked word for word
In detail
- Ineligible business type: SBA regulations specifically designate businesses using pyramid or multilevel sales distribution plans as ineligible for SBA loan assistance.
- Scope of restriction: An ineligible business cannot obtain an SBA loan for any purpose, which includes purchasing or constructing a building for its own use.
The source
What the SOP says
“Businesses using pyramid or multilevel sales distribution plans are not eligible. 13 CFR § 120.110(f)
“An ineligible business cannot obtain an SBA Loan for any purpose, including the purchase or construction of a building for its own use.
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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.