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SBA rules · SOP 50 10 8.1

Can an SBA loan finance a research and development company?

No, research and development (R&D) companies are ineligible for SBA 7(a) and 504 loan financing.

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

In detail

  • Ineligible business type: Speculative businesses are barred from receiving SBA business loan assistance.
  • R&D classified as speculative: SBA specifically lists "Research and Development" under its definition of speculative businesses.
  • Core program applicability: This restriction is part of the core applicant eligibility requirements that apply to all loans made under both the 7(a) and 504 programs.

The source

What the SOP says

“Research and Development; and
SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Speculative businesses include: (lines 516-521)✓ Verified
“Speculative businesses are not eligible.
SOP 50 10 8.1, Chapter 1: Primary Applicant Eligibility Requirements > Speculation 13 CFR § 120.110 (s) (lines 512-515)✓ 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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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.