Businesses must have a tangible net worth of less than $15 million and
must have average net profits after taxes less than $5.0 million during
the past two fiscal years or meet other SBA size standards. The
business must be organized as a for-profit business. Types of businesses
eligible include retail, service, wholesale or manufacturing.
Non-qualifying businesses include passive income and real estate
companies, developer/landlord deals, financial institutions, unregulated
media and not-for-profit businesses.
Principals (owners) must be U.S. citizens or registered aliens
with green card. INS verification of non-U.S. citizen status is
required. Owners cannot be convicted felons currently on probation.
Anyone who owns 20 percent or more of the operating company must
personally guarantee the note.