Glossary · People and paperwork
Co-operative
In short
A business owned and operated by its members for their mutual benefit, rather than for profit alone. Buyers care because while some co-operatives are eligible for SBA loans, their unique ownership and operational structure can impact financing and management.
What it means in a deal
The SBA can guarantee loans to certain types of co-operatives, like worker co-ops or veteran-owned co-ops, provided they meet all other eligibility criteria. However, some types, like consumer co-ops, may be ineligible. Discuss the specific structure of the co-op with your lender early on.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Co-operative
- Is the SBA like a co-signer for my business loan?
- What happens if a major co-owner or guarantor has a recent bankruptcy on their personal credit?
- What impact does a co-signer on my personal guaranty have on the SBA 7(a) loan approval?
- Can an SBA 7(a) loan be used to purchase a business that is structured as a co-op?
- Can an SBA 7(a) loan finance the entire $500,000 purchase price for buying out a co-owner?
- What if my spouse is a co-signer on a personal asset offered as collateral but not an owner?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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