Glossary · Reading the business
Veteran-owned cooperative
In short
While most cooperatives are ineligible for SBA 7(a) loans, certain veteran-owned cooperatives can qualify. This is a specific exception to the general rule against financing co-ops.
What it means in a deal
If you're looking at a cooperative, especially one marketed as veteran-owned, you need to verify it meets strict SBA criteria for eligibility. This typically means it must be 51% or more owned by veterans and meet other specific cooperative requirements. Don't assume eligibility; confirm with your lender.
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 Veteran-owned cooperative
- Does the SBA loan program offer any specific benefits for veteran-owned businesses?
- What is the policy for a 7(a) loan when the borrower is a small agricultural cooperative?
- What if the business property is owned personally by the seller?
- What if the business real estate is owned separately by the seller?
- What happens if a business real estate is owned separately by the seller?
- How can life insurance facilitate a smooth succession plan for a family-owned business?
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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