13 CFR §120.110

1. (a)Non-profit businesses (for-profit subsidiaries are eligible);
2. (b)Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors (pawn shops, although engaged in lending, may qualify in some circumstances);
3. (c)Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies under § 120.111);
4. (d)Life insurance companies;
5. (e)Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify);
6. (f)Pyramid sale distribution plans;
7. (g)Businesses deriving more than one-third of gross annual revenue from legal gambling activities;
8. (h)Businesses engaged in any activity that is illegal under Federal, State, or local law;
9. (i)Private clubs and businesses which limit the number of memberships for reasons other than capacity;
10. (j)Government-owned entities (except for businesses owned or controlled by a Native American tribe);
11. (k)- (l) [Reserved]
12. (m)Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans;
13. (n)Businesses with an Associate who is currently incarcerated, serving a sentence of imprisonment imposed upon adjudication of guilty, or is under indictment for a felony or any crime involving or relating to financial misconduct or a false statement;
14. (o)Businesses in which the Lender or CDC, or any of its Associates owns an equity interest;
15. (p)Businesses which:
    1. (1)Present live performances of a prurient sexual nature; or
    2. (2)Derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature;
16. (q)Unless waived by SBA for good cause, businesses that have previously defaulted on a Federal loan or Federally assisted financing, resulting in the Federal government or any of its agencies or Departments sustaining a loss in any of its programs, and businesses owned or controlled by an applicant or any of its Associates which previously owned, operated, or controlled a business which defaulted on a Federal loan (or guaranteed a loan which was defaulted) and caused the Federal government or any of its agencies or Departments to sustain a loss in any of its programs. For purposes of this section, a compromise agreement shall also be considered a loss;
17. (r)Businesses primarily engaged in political or lobbying activities; and
18. (s)Speculative businesses (such as oil wildcatting).