---
kind: "section"
citation: "13 C.F.R. § 120.100"
title: "13"
number: "120.100"
heading: "What are the basic eligibility requirements for all applicants for SBA business loans?"
url: "https://uscodex.org/cfr/13/120.100"
---

# §120.100. What are the basic eligibility requirements for all applicants for SBA business loans?


To be eligible for an SBA business loan, a small business applicant must:

- (a) Be an operating business (except for loans to Eligible Passive Companies);
- (b) Be organized for profit;
- (c) Be located in the United States;
- (d) **Be small under the size requirements of part 121 of this chapter (including affiliates).** See [subpart H](/cfr/13/subpartH.md) of this part for the size standards of [part 121](/cfr/13/part121.md) of this chapter which apply only to 504 loans; and
- (e) **Be able to demonstrate a need for the desired credit.**

## Notes

### Authority

Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

### Source

Source: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.