SBA SOP 50 10 8.1, A.Ch2.C — Cooperatives

SOP 50 10 8.1 A.Ch2.C

Effective 2026-10-01 · publisher's stamp for this provision

C. Cooperatives 1. Eligibility: All Applicants operating under a cooperative structure must meet SBA’s eligibility requirements. 2. SBA Lenders may process loans to a cooperative or to an eligible small business owned or controlled by a cooperative under delegated authority. 3. Each loan must be guaranteed by at least one individual or entity. (See Ch. 5, Para. A, Guaranties, of this Section for more information.) 4. For 7(a) only: SBA may guarantee a loan to a cooperative to purchase a controlling interest (51% or more) in the employer small business. Any transaction costs associated with the purchase of the controlling interest, but not costs associated with setting up the cooperative, may be included in the use of proceeds. 5. The SBA Lender must submit supporting organizational documents and agreements as applicable with the loan application depending on the type of cooperative and the purpose of the loan (e.g., a loan to a cooperative to acquire a controlling interest in the employer concern), which may include Cooperative Agreement; Organization documents; Articles of Incorporation/Organization; Bylaws; Operating/Conversion/Redemption/Membership Agreement(s); or any other agreements as necessary. 6. Whether processed under delegated or non-delegated procedures, the SBA Lender must confirm that the applicant and cooperative meet legal requirements and the requirements and conditions prescribed by other regulatory bodies. SBA will not review any applications, even those submitted via non-delegated processing, for compliance with the requirements imposed by other regulatory bodies for these types of transactions.

Source: SBA SOP 50 10 8.1, A.Ch2.C — Cooperatives · source URL · snapshot 0fb0c4692cf52938