Business owners in Georgia like you have the option of looking into the 7(a) loan program if you need a little financial boost for your business. However, certain types of businesses are ineligible for this program. Before requesting aid, be sure that your business does not fall within these parameters.
What businesses are not determined acceptable for this particular type of financial assistance? The U.S. Small Business Administration states that certain activities can disallow you from applying for federal government aid. For example, government-owned companies or life insurance companies cannot apply. Neither can businesses with associates that own equity interest. Speculative businesses like oil exploration aren’t applicable either, due to the nebulous nature of the job field.
Certain types of business do not get support, either. This obviously includes businesses that partake in illegal activities, or businesses that are caught engaging in pyramid sale distribution. However, it can also include things like businesses that make more than 2.5% of their gross income through sexual services, products, displays and so on. Any business that features live sexual performances may not apply, either.
Exclusivity is another deciding factor. If you own a private business or club that limits its membership for reasons outside of capacity, the 7(a) loan program is not for you. Businesses involving lobbying or politics will also not be eligible to apply.
These are some of the most common issues that can make a business ineligible for applying for a 7(a) loan. If you are still uncertain as to where your business falls, you can check to get a more exact statement for your particular situation.